When a price shock has occurred, inflation returns to its pre-shock rate ________
A) in the period following the price shock
B) in the period when output has returned to its pre-shock rate
C) once the output gap has returned to zero
D) only in the long run
E) none of the above
E
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If the value of the U.S. dollar changes from 1.4 euros to 1.2 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports
A) rise; rise B) fall; fall C) rise; fall D) fall; rise
If the value of a nation's merchandise exports exceeds merchandise imports, the nation is running a
a. capital account deficit. b. capital account surplus. c. balance of trade surplus. d. balance of trade deficit.
Which of the following was not a factor in Japan’s post-World War II economic success?
A. A high rate of investment B. A well-educated workforce C. A high rate of natural resource discovery D. A high rate of technological adoption
The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A. real expenditures equal total planned production. B. export spending equals total planned import spending. C. government spending equals total planned tax revenues. D. real expenditures equal actual nominal GDP.