Because the open-economy macroeconomic model focuses on the long run, it is assumed that
a. GDP, but not the price level is given.
b. the price level, but not GDP is given.
c. both the price level and GDP are given.
d. the price level and GDP are variables to be determined by the model.
c
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The Japanese yen will appreciate against the dollar if
A) U.S. residents demand more Japanese goods. B) U.S. residents demand fewer Japanese goods. C) Japanese residents demand more U.S. goods. D) none of the above.
Other things the same, an increase in the amount of capital firms wish to purchase would initially shift
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
When a cartel breaks down and its members start cheating, the behavior in the industry becomes a
A) noncooperative game. B) zero-sum game. C) high stakes game. D) positive sum game.
Which of the following increases the supply of a good and shifts its supply curve rightward?
A) a smaller number of producers B) an increase in the price of the good C) a higher wage paid to workers in the industry D) a technological advance in how the good is produced E) an increase in the cost of the resources used to produce the good