Oil prices increased significantly in 2008. According to the Keynesian model, this increase in oil prices should have caused which of the following to occur?
A. demand-push inflation
B. cost-pull inflation
C. demand-pull inflation
D. cost-push inflation
Answer: D
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The United States is guilty of dumping on the international market because of the
A. superior technology. B. high availability of capital. C. highly educated workforce. D. agricultural subsidies.
Criticisms of the ECB center on its primary focus on ______ with less (but perhaps more needed) focus on _______.
A) unemployment and GDP growth; exchange rates B) exchange rates; inflation problems C) price stability; unemployment and GDP growth D) political cohesiveness; price stability
How does a country maintain a fixed exchange rate?
A) By intervening in the foreign exchange markets and buying or selling currency as needed to achieve the desired exchange rate. B) By forbidding foreign exchange markets to trade currency at anything other than the official exchange rate. C) By setting domestic interest rates to achieve purchasing power parity as the desired exchange rate. D) By intervening in import and export markets to achieve the desired current account and exchange rate.
As long as average revenue remains above average total cost:
A. total revenue will be higher than total cost. B. the firm will be making profits. C. price will be greater than average total cost. D. All of these are true.