The J-curve illustrates which of the following?
A) the effects of depreciation on the home country's economy
B) the immediate increase in current account caused by a currency depreciation
C) the gradual adjustment of home prices to a currency depreciation
D) the short-term effects of depreciation on the current account
E) the Keynesian view of international trade dynamics
D
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Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The market is in equilibrium at the 6% rate of interest. If the money supply then decreases as shown, the transaction demand for money will change by
A. $0. B. $75. C. $175. D. $125.
The return to entrepreneurship is known as
A) economic profit. B) normal profit. C) opportunity revenue. D) normal revenue. E) explicit profit.
In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker
a. True b. False Indicate whether the statement is true or false
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.