A currency appreciation is disinflationary and contractionary if the
A. inward shift of the aggregate demand curve due to the fall in exports exceeds the outward shift of the aggregate supply curve due to lower input prices.
B. outward shift of the aggregate demand curve due to the rise in exports exceeds the outward shift of the aggregate supply curve due to lower input prices.
C. outward shift of the aggregate demand curve due to the fall in exports exceeds the inward shift of the aggregate supply curve due to higher input prices.
D. inward shift of the aggregate demand curve due to lower input prices exceeds the outward shift of the aggregate supply curve due to the rise in exports.
Answer: A
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The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound
A) will remain the same. B) will rise. C) will fall D) might rise, fall, or remain the same but more information is needed. E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.
Which of the following ideas is illustrated by the production possibilities curve [PPC]?
a. There are no limits on the total production feasible in an economy. b. An economy need not decrease the production of one commodity to increase the production of another. c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development. d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed. e. An economy can specialize in the production of only one good.
Cyclical unemployment
A. occurs even when an economy is producing at a point on its production possibilities frontier. B. occurs only during a recession. C. tend to occur when an economy experiences inflation. D. is a part of an economy's natural rate of unemployment.
The "economic perspective" refers to:
A) unlimited resources in a context of limited material wants B) microeconomic phenomena, but not macroeconomic phenomena C) Macroeconomic phenomena, but not microeconomic phenomena D) the making of rational decisions in a context of marginal costs and marginal benefits