Ceteris paribus, with a fixed exchange rate, if people in Argentina decide to buy more Russian oil, this causes a market ________ of Russian currency and creates a balance-of-payments ________ for Russia.
A. shortage; deficit
B. surplus; deficit
C. shortage; surplus
D. surplus; surplus
Answer: C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?
a. There was an unplanned increase in inventories equal to $2 million. b. There was no unplanned change in inventories. c. There was an unplanned decrease in inventories equal to $2 million. d. There was an unplanned decrease in inventories equal to $19 million.
A price ceiling placed on a market for rental apartments is called
a. rent control b. rent subsidy c. apartment subsidy d. public housing e. public supplement
To the degree that the American Medical Association constraints the number of new spots that are available in the nation's medical schools, it is
A. shifting the demand for physicians to the right. B. kinking the supply of physicians to make it vertical at the level of the constraint. C. shifting the supply of physicians to the right. D. shifting the demand for physicians to the left.