Refer to Figure 5.6. Which diagram shows an increase in income with bread being inferior and soup being normal?
A. A
B. B
C. C
D. D
C. C
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Assume the United States has only one trading partner. The U.S. demand curve for foreign currency is drawn while holding constant all of the following factors except one. Which is the exception?
a. incomes of U.S. consumers b. the exchange rate c. the expected rate of inflation in the U.S. d. the foreign prices of foreign goods e. U.S. interest rates relative to foreign interest rates
The natural rate of unemployment occurs if there is no
a. unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
When a firm faces a perfectly competitive market and buys its inputs from perfectly competitive markets, the only choice the firm has to affect its profits is to:
A. increase its selling price. B. change the quantity it produces. C. decrease its cost of production lower than other firms. D. decrease the selling price.
Which of the following results from a change in the business cycle, ceteris paribus?
A. Structural unemployment. B. Cyclical unemployment. C. Structural deficit. D. Frictional unemployment.