The aggregate supply curve shows the relationship between the price level and the level of real GDP produced by the nation's economy
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is incorrect?
A. Any central bank policy that influences the domestic interest rate will affect the exchange rate. B. A foreign exchange intervention affects the value of a country's currency by changing domestic interest rates. C. Higher U.S. interest rates would likely result in an appreciation of the U.S. dollar. D. Sterilized changes in foreign exchange reserves alter a country's monetary base.
Adibok knows that it produces and sells high quality athletic shoes. Wurkout knows that it produces and sells low quality athletic shoes. According to the signaling theory of advertising,
a. both Adibok and Wurkout have incentives to spend large amounts of money on advertising for their athletic shoes. b. Adibok has an incentive to spend a large amount of money on advertising for its athletic shoes, but Wurkout does not. c. Wurkout has an incentive to spend a large amount of money on advertising for its athletic shoes, but Adibok does not. d. neither Adibok nor Wurkout has an incentive to spend a large amount of money on advertising for their athletic shoes.
If the seasonally unadjusted unemployment rate rises from December to January, you
A. can be assured that the seasonally adjusted rate has fallen. B. know that the seasonally adjusted rate remained the same. C. have no knowledge as to what will have happened to the seasonally adjusted rate. D. can be assured that the seasonally adjusted rate has risen as well.
Under the assumption of rational expectations, real GDP is determined by
A. the economy's aggregate demand curve. B. a combination of monetary and fiscal policy. C. monetary policy but not by fiscal policy. D. the long-run aggregate supply curve.