The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will
A. shift the aggregate demand curve leftward.
B. shift the aggregate supply curve leftward.
C. decrease American exports and increase American imports.
D. increase American exports and decrease American imports.
D. increase American exports and decrease American imports.
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The value of currently produced final goods and services measured in constant prices is called:
A) real GDP. B) nominal GDP. C) imputed values. D) inflation.
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.
Constraints
What will be an ideal response?
Figure 3.4 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.