If current aggregate expenditure equals current production, an economy is in equilibrium.
a. true
b. false
a. true
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If the U.S. dollar appreciates, it means that
a. the domestic price level has declined. b. the domestic purchasing power of the dollar has decreased. c. fewer U.S. dollars are required to purchase foreign currencies. d. more U.S. dollars are required to purchase foreign currencies.
Which of the following is not a basic characteristic of monopolistic competition?
A. The use of trademarks and brand names. B. Recognized mutual interdependence. C. Product differentiation. D. A relatively large number of sellers.
If you remove resources from factory production, the quantity of factory goods will:
A. increase. B. decrease. C. remain the same but their price will decrease. D. be diverted to other production.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential