State how each of the following affect the aggregate demand curve
a. The price level increases.
b. Consumers expect higher inflation in the future.
c. The exchange rate rises.
d. Foreign income decreases.
What will be an ideal response?
a. There is a movement upward along the aggregate demand curve. The aggregate demand curve does not shift.
b. The aggregate demand curve shifts rightward.
c. The aggregate demand curve shifts leftward.
d. The aggregate demand curve shifts leftward.
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Suppose a country attempts to be self-sufficient and doesn't trade with any other countries. From an economic perspective, citizens of this nation can be expected to
a. gain materially from this policy because they can consume more goods over time than if they engaged in trade with foreigners. b. produce less total value than they could if they specialized and engaged in trade with other nations. c. gain from more rapid growth since home markets are reserved for home producers. d. be just as well off without trade since the value of what is sent to other nations in trade just equals the value of what is received in trade.
The enclosure movement in England in the 17th century represented an attempt to transform
a. a public good into a private good. b. a private good into a public good. c. a private good into a common resource. d. a common resource into a private good.
Liquidity is
A. The opportunity cost of purchasing a bond. B. Low for cash. C. Not important for bondholders. D. The ability of an asset to be converted to cash.
Refer to Scenario 13.1. If Dean gets to set the agenda, he will pit ________ in the first round to assure that ________ wins the first round vote
A) calamari and jalapeno poppers; jalapeno poppers B) calamari and potato skins; potato skins C) potato skins and calamari; calamari D) jalapeno poppers and potato skins; jalapeno poppers