The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would rise and exceed national saving. B) It would fall to a level equal to national saving. C) It would not change. D) It would rise to a level equal to net foreign investment.
Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries. The rate at which one country's currency can be traded for another is called:
A) the trade balance. B) capital inflows. C) capital outflows. D) the exchange rate.
For each of the following scenarios, state the short-run effect on the AS curve
a. The price level decreases. b. Lower inflation is expected in the future. c. Worker productivity declines. d. Oil prices increase. e. The size of the labor force decreases.
If U.S. buyers purchased $500 billion of foreign goods and foreign buyers purchased $400 billion of U.S. goods, the U.S. balance of trade would be:
A. ?$100 billion. B. $100 billion. C. $400 billion. D. -$500 billion.