Equilibrium in the foreign exchange market occurs:
a. at the point where the foreign exchange demand and supply curves intersect.
b. at the point where the foreign exchange demand and supply curves reach maximum separation.
c. when two nations' economic leaders agree on the appropriate exchange rate.
d. when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs.
e. only by chance, if at all, because they change very frequently.
a
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The total value of the goods and services produced over a period of time represents an economy’s
a. planned savings. b. total income. c. total wealth. d. capital.
Data in the following table refer to the purchase of a resource by a pure monopsonist. Let the resource be labor time L, measured in hundreds of hours per day
Units of Labor Marginal Average Marginal Revenue Input Expenditure Expenditure Product L ME AE MRP 1 10 10 16 2 12 11 15 3 14 12 14 4 16 13 13 5 18 14 12 6 20 15 11 7 22 16 10 8 24 17 9 a. Determine the profit maximizing purchase rate of labor for the monopsonist. b. If this market were not monopsonistic but competitive, what would be the purchase rate of labor time? c. Determine the equilibrium wage rate in both the monopsonistic and competitive markets?
Movements up along a particular short run Phillips curve are not consistent with: a. Increases in aggregate demand
b. Movements up along the short run aggregate supply curve. c. Movements up along the long run aggregate supply curve. d. Movements up along a particular short run Phillips curve are consistent with all of the above.
In terms of the price-real GDP diagram, a given expansion of the money supply will have a greater effect on prices the
a. steeper the aggregate supply curve. b. flatter the aggregate supply curve. c. higher the initial price level. d. lower the initial price level.