Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that
A) aggregate demand has been constant while aggregate supply has increased.
B) aggregate demand has increased more than aggregate supply.
C) aggregate demand has increased while aggregate supply has been constant.
D) aggregate demand has increased less than aggregate supply.
B
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Which of the following is a dynamic game?
A) rock-paper-scissors (Roshambo) B) flipping pennies C) chess D) None of the above.
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . Now the exchange rate changes to 90 yen = $1 . Then the:
a. machine would now cost more dollars. b. machine would now cost the Japanese citizen less yen. c. machine would now cost less dollars. d. machine would now cost the Japanese citizen more yen. e. yen has depreciated in value.
The idea behind the "Big Mac index" is a test of
a. interest rate parity theory. b. long-run equilibrium theory. c. purchasing power parity theory. d. exchange rate equalization theory.
Refer to the Laffer Curve below. A cut in the tax rate from T2 to T1 would:
A. Decrease tax revenues and support the views of supply-side economists
B. Increase tax revenues and support the views of supply-side economists
C. Increase tax revenues and support the views of mainstream economists
D. Decrease tax revenues and support the views of mainstream economists