Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization.
b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate.
c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index.
d. In the Classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index.
e. All of the above are true.
.D
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Which of the following is NOT considered a receipt in the balance of payments?
A) exports of goods B) capital inflows C) import of services D) unilateral transfers to U.S. citizens
Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
When producers price their items, they should realize there will usually be a consumer surplus when the items are sold. What does this mean to them?
a. They should price items one dollar above the market equilibrium price. b. They should price items somewhat higher than what consumers are willing to pay for them. c. They should price items exactly at what consumers are willing to pay for them. d. They should price items somewhat lower than what consumers are willing to pay for them.
An increase in the inflation rate of one country relative to another country will probably cause
A. an increase in the amount of official reserves held by the inflating country's central bank. B. a balance of trade deficit for the inflating country. C. a current account surplus for the inflating country. D. an increase in exports for the inflating country.