Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant
(Assume the appreciation causes no effects in the supply side of the economy.) A) an increase; an increase
B) a decrease; a decrease
C) no change; an increase
D) no change; a decrease
B
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If the number employed is 190 million, the working-age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is
A) 5%. B) 5.2%. C) 8%. D) 10%. E) 50%.
Over the past two decades the U.S. has persistently had trade deficits
a. True b. False Indicate whether the statement is true or false
The misery index is supposed to measure the
a. social cost of unemployment. b. health of the economy. c. lost output associated with a particular unemployment rate. d. short-run tradeoff between inflation and unemployment.
Use the concept of supply and demand to explain why an increase in Medicare subsidies can lead to an increase in health care spending by the government
What will be an ideal response?