The movement left from MD1 to MD3 happened because of a(n) ______ in price level and/or a(n) ______ in RGDP.
a. increase; increase
b. decrease; increase
c. increase; decrease
d. decrease; decrease
d. decrease; decrease
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Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
a. a gradual increase in the value of its currency b. a gradual decrease in the value of its currency c. a "run" on its currency and a sudden appreciation d. a "run" on its currency and a sudden devaluation
If the CPI is 120 in 2005 and 150 in 2006, what is the rate of inflation over this period?
A. 8% B. 20% C. 25% D. 30%
The process of negotiating labor contracts between the union and management concerning wages and working conditions is called
A. collective bargaining. B. featherbedding. C. lobbying. D. an apprenticeship.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower