In a small open economy, Sd = 200 + 500rw and Id = 300 - 200rw. If rw = 0.1, then net exports =
A. 30.
B. -30.
C. 50.
D. -50.
Answer: B
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A microeconomist would study all of the following issues EXCEPT
A) the impact of a change in consumer income on the sales of corn. B) the impact of a snowstorm on the sales of snow shovels. C) the most efficient means for General Motors to produce an automobile. D) the effect of a change in income taxes on the nation's rate of unemployment.
Carol is a coal miner who just got laid off when the last coal mine in the area was shut down. She has looked everywhere for another job as a miner, but cannot find one. Given that Carol is unlikely to find another job as a miner, she would be considered:
A. frictionally unemployed. B. structurally unemployed. C. real-wage unemployed. D. Carol is a discouraged worker.
If the interest rate increases, then the:
a. economy will move to a new point along the existing consumption function. b. consumption function will shift up. c. consumption function will shift down. d. investment demand curve will shift up. e. economy will move to a new point along the existing investment demand curve.
Which of the following will occur when an economy's price level increases?
A. The purchasing power of money will increase. B. The purchasing power of money will decrease. C. The real value of wealth will increase. D. Aggregate demand will increase.