When the dollar appreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward.
b. fall and aggregate supply shifts inward.
c. rise and aggregate supply shifts outward.
d. rise and aggregate supply shifts inward.
a
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Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain
What will be an ideal response?
The overall mortality rate in the United States has remained fairly constant for the past 30 years
Indicate whether the statement is true or false
Given the assumptions of the classical model
A) the economy will often experience recessions and expansions. B) expansion will be the normal condition, but recessions will often be severe and require government intervention. C) the macroeconomy is erratic, and problems will often be increased over time. D) the market is a self-correcting mechanism.
Which of the following is observed in an economy during the contraction phase of the business cycle?
a. Nominal GDP begins to rise b. Real GDP remains constant c. Real GDP falls d. Productivity of resources increase e. Unemployment falls