Depreciation of the Japanese Yen would lead to
a. outward shift in the aggregate supply curve for Japan.
b. upward shift in the aggregate demand curve for Japan.
c. downward shift in the aggregate supply curve for Japan.
d. inward shift in the aggregate demand curve for Japan.
b
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If a market produces a level of output that exceeds the competitive equilibrium output, then
A) social welfare will be higher. B) producer surplus will be higher. C) marginal cost will exceed price. D) All of the above.
What was the result of the Bretton Woods Conference?
(A) The creation of a fixed exchange-rate system for the United States and much of Western Europe. (B) The creation of NAFTA. (C) The creation of a flexible exchange-rate system for the United States and much of Western Europe. (D) The creation of the euro.
For a given level of inflation, if concerns about future weakness in the economy cause businesses to reduce their spending on new capital, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; downward C. aggregate demand curve; right D. short-run aggregate supply line; upward
Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic. Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why?
A. Maria's model gets the higher grade because it is more realistic. B. Anna's model gets the higher grade because it predicts accurately more often. C. Maria's model gets the higher grade because it is more complex. D. Anna's model gets the higher grade because it is simpler.