As the dollar appreciates, the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________
A) rises; right
B) rises; left
C) falls; right
D) falls; left
D
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Starting from long-run equilibrium, a sharp drop in oil prices results in ________ output in the short run and ________ output in the long run.
A. lower; higher B. lower; potential C. higher; higher D. higher; potential
Expansionary fiscal policy is likely to lead a nation's currency to depreciate
Indicate whether the statement is true or false
If an economy used gold as money, its money would be
a. commodity money, but not fiat money. b. fiat money, but not commodity money. c. both fiat and commodity money. d. functioning as a store of value and as a unit of account, but not as a medium of exchange.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.