In a fixed exchange rate regime, an increase in the price level will cause which of the following?
A) a real appreciation and a leftward shift in the aggregate demand curve
B) a real appreciation and no shift in the aggregate demand curve
C) a real depreciation and a rightward shift in the aggregate demand curve
D) a real depreciation and no shift in the aggregate demand curve
E) no change in the real exchange rate, and no change in aggregate demand
D
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A market for a product reaches equilibrium when
A. buyers intend to buy a quantity equal to the quantity that sellers intend to sell. B. the actual quantity bought by buyers equals actual quantity sold by sellers. C. the price rises further after there is a surplus. D. price falls further after there is a shortage.
According to the Application, economist John B. Taylor found that the aid to state and local governments which were a part of the 2009 stimulus package were used primarily to
A) increase spending on transfer programs, goods, and services. B) increase spending on goods and services. C) increase spending on transfer programs, but spending on goods and services declined. D) increase spending on infrastructure, but spending on transfer programs declined.
Government ownership of industries is quite uncommon
a. True b. False
Which of the following would be considered a factor of production in the provision of bus service?
A. The amount it costs to provide bus service between two locations B. The hourly wage paid to bus drivers C. The revenue from the sale of bus tickets D. Bus drivers