If aggregate demand decreases, the
A) short-run Phillips curve shifts rightward.
B) economy moves to a higher inflation rate along its short-run Phillips curve.
C) short-run Phillips curve does not shift nor is there a movement along it.
D) short-run Phillips curve shifts leftward.
E) economy moves to a lower inflation rate along its short-run Phillips curve.
E
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An input-output table details the sales of each industry to all other industries in an economy
Indicate whether the statement is true or false
One reason China has been able to grow so rapidly even though its financial development is still in its early stages is
A) the high savings rate of around 40%. B) the shift of labor to the agricultural sector. C) the stringent enforcement of financial contracts. D) the ease of obtaining high-quality information about creditors.
What is the "Hotelling rule" for situations in which a producer can determine when a good is sold?
A) Price must rise at exactly the rate of interest. B) Marginal cost must rise at exactly the rate of interest. C) Price minus marginal cost must rise at exactly the rate of interest. D) Price plus marginal cost must rise at exactly the rate of interest. E) Price and marginal cost must be independent of the rate of interest.
If one U.S. dollar = 11.76 Mexican pesos [Ps], then the reciprocal exchange rate is:
a. 1 Ps = $11.76. b. $1 = Ps 3.92. c. $1 = Ps 0.008. d. $1 = Ps 0.085. e. 1 Ps = $0.085.