Based on the graph showing a reduction in the growth of the money supply, as the economy moves from point D to point E on the short-run Phillips curve, real wages rise, causing companies to ______.
a. hire more new workers
b. receive higher relative prices
c. hire fewer new workers
d. increase production
c. hire fewer new workers
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In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.
A. growth of domestic real GDP; growth of foreign real GDP B. inflation rate; unemployment rate C. real interest rate; exchange rate D. exchange rate; real interest rate
An increase in U.S. prices relative to Japanese prices will
A) decrease both U.S. exports and imports. B) increase total planned spending on U.S. goods and services. C) increase U.S. imports and decrease U.S. exports. D) decrease U.S. imports and increase U.S. exports.
Two important theories of unemployment are
A) game theory and search theory. B) search theory and the efficiency wage theory. C) the efficiency wage theory and the quantity theory. D) the quantity theory and game theory.
On a graph, an increase in quantity demanded is represented by a:
a. Movement downward and to the right along the demand curve b. Leftward shift of the demand curve c. Rightward shift of the demand curve d. Movement upward and to the left along the demand curve