Given a fixed upsloping AS curve, a rightward shift of the AD curve will:
A. cause cost-push inflation.
B. increase real output but not the price level.
C. increase the price level but not real output.
D. increase both the price level and real output.
D. increase both the price level and real output.
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Voluntary exchanges between ____________ generates surplus.
A. firms B. countries C. individuals D. All of these are true.
A monopolist is a price maker who will lose some business if the price is increased
a. True b. False Indicate whether the statement is true or false
In the short run, the chain of causality between monetary policy and the exchange rate under fixed rates differs from a floating rate. How?
a. In a fixed rate regime, the money supply is determined first, then interest rates, then the short-run exchange rate. b. In a fixed rate regime, interest rates are determined first, then the money supply, and then the short-run exchange rate. c. In a floating rate regime, exchange rates are determined first, then the nominal interest rate (according to uncovered interest parity), and then the money supply. d. In a fixed rate regime, exchange rates are determined first, then the nominal interest rate (according to uncovered interest parity), and then the money supply.
To increase productivity,
A. Capital spending must increase at the same pace as the labor force expands. B. Capital spending must be greater than zero. C. Capital spending must increase faster than the labor force expands. D. The labor force must grow faster than capital spending increases.