The effect of a change in the value of the dollar in the foreign exchange market due to a change in the price level helps explain the slope of aggregate demand, but does not shift it. The effects of a change in the value of the dollar in the foreign exchange market due to speculation is shown by shifting the aggregate demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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A prolonged recession in Europe should decrease the
A. supply of U.S. dollars. B. demand for U.S. dollars. C. supply of U.S. goods and services. D. demand by Americans for euros.
Under pure competition, the market price of an output is $3. The output schedule of a firm using input X is listed in the table below. If the price of input X is $12, how many units of input X will the firm employ to maximize profits?Units of XMarginal Product110.029.938.847.756.665.574.483.392.2
A. 5 B. 7 C. 4 D. 9
The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic. B) to ensure that the elasticity has a negative value. C) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve. D) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
A dual economy is characterized by:
a. rapid productivity growth in both the agricultural sector and the manufacturing sector. b. uneven development trends in two economic sectors. c. drastic differences in regional work ethics. d. the nonexistence of the government and foreign trade sectors. e. a manufacturing sector that does not depend on natural resource supplies for production.