We draw the long-run aggregate supply curve as a vertical line to reflect the fact that
A. the productive capacity of the economy never changes after full adjustment has occurred.
B. an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred.
C. changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred.
D. technology and resource endowments do not affect long-run real GDP after full adjustment has occurred.
Answer: C
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In the foreign exchange market, how does each of the following influences affect the demand for dollars and the demand curve for dollars?
a) an increase in the exchange rate. b) an increase in the U.S. interest rate. c) a fall in the expected future exchange rate.
The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:
A) a direct consumer survey. B) contingent valuation. C) the hedonic estimation technique. D) conjoint analysis.
The Glass-Steagall Act became law in the
A) 1890s. B) 1910s. C) 1930s. D) 1950s.
What condition(s) must exist to make trade among nations mutually beneficial?
a. Nations must have the same opportunity costs of production. b. Nations must not impose tariffs or quotas. c. Nations must be equally efficient at producing a traded good. d. Nations must have an absolute advantage in the production of a good. e. Nations must have a comparative advantage in the production of a good.