The CPI includes the prices of
a. goods and services purchased by American consumers
b. goods and services purchased by all consumers (both foreign and domestic)
c. goods and services purchased by the government
d. investment goods purchased by businesses
e. exports purchased by foreign buyers
A
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The ________ analyzes the BOP and exchange rates in terms of money supply and money demand
A) elasticities approach B) "pass-through of devaluation" C) monetary approach D) absorption approach
If the money supply in an economy is increased, the interest rate will fall, and real GDP will decrease
a. True b. False Indicate whether the statement is true or false
Real GDP
a. moves in the opposite direction as unemployment. b. increases as production falls. c. falls when households save a smaller fraction of their income. d. All of the above are correct.
Isoquants are normally drawn with a convex shape because:
A. inputs are not perfectly substitutable. B. inputs are perfectly complementary. C. inputs are not perfectly complementary. D. inputs are perfectly substitutable.