When the value of the dollar increases, the net effect on the economy
A) will be an increase in short-run aggregate supply and a decrease in aggregate demand.
B) will be decrease in short-run aggregate supply and an increase in aggregate demand.
C) will be an increase in both aggregate demand and aggregate supply.
D) will be a decrease in both aggregate demand and aggregate supply.
A
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An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, thereby ________ a deadweight loss
A) below; avoiding B) below; creating C) above; avoiding D) above; creating
Having a competitive advantage emanates from
a. Increased price b. Decreased cost c. One or both of the above d. None of the above
Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them
a. True b. False Indicate whether the statement is true or false
If you asked a classical economist which economic time frame she prioritized, how might she respond?
A) "Prices tend to be sticky when supply or demand changes." B) "Savings is a drain on aggregate demand." C) "The economy tends toward instability and cyclical unemployment." D) "The long run is key." E) "The short run is key."