The vertical axis in the AD-AS model shows:
A. the economy's real GDP growth rate.
B. the economy's inflation rate.
C. the economy's short-term interest rate.
D. the economy's nominal GDP growth rate.
Answer: B. the economy's inflation rate.
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In the context of the global economy, the United States' capacity utilization rate __________________ than it was just a few decades ago.
A. is much more important B. is much less important C. has the same importance
In the monetarist model, an increase in both government spending and taxes would
a. lead to a large increase in interest rates. b. increase income dollar for dollar with the increase in government spending. c. have a much smaller impact on income than in the Keynesian model. d. all of the above.
All other things being equal, a greater supply of scientists and engineers will increase the level of technology
a. True b. False Indicate whether the statement is true or false
In international finance, hedging indicates:
a. not being able to make a commitment to buy or sell. b. delaying a purchase of foreign exchange, hoping the price will fall. c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.