When the dollar appreciates, the cost to Americans of foreign goods
a. rises and the CPI falls.
b. rises and the CPI rises.
c. falls and the CPI rises.
d. falls and the CPI falls.
d
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When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and the government policy to eliminate this gap will ________ real GDP and ________ the price level
A) an inflationary gap; increase; increase B) a recessionary gap; decrease; decrease C) an inflationary gap; increase; decrease D) a recessionary gap; increase; decrease E) an inflationary gap; decrease; decrease
A trade deficit can produce inflation when a country and its trading partners are on the gold standard or a bi-metallic system
Indicate whether the statement is true or false
At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain
What will be an ideal response?
Keynes argued that because of sticky prices and wages
A) the short-run aggregate supply curve could be horizontal. B) the short-run aggregate supply curve is probably vertical. C) the long-run aggregate supply curve slopes downward. D) the aggregate demand curve is vertical.