In the short run, an increase in net exports causes
A. an increase in real GDP and the price level.
B. an increase in real GDP and a decrease in the price level.
C. adecrease in real GDP and an increase in the price level.
D. a decrease in real GDP and the price level.
Ans: A. an increase in real GDP and the price level.
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Using a graph, show the effects of a weaker dollar on the economy. Explain
What will be an ideal response?
If the central bank can act as a lender of last resort during a banking panic, banks can
A) encourage the public to borrow directly from the central bank, and this will worsen the banking panic. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) call in their loans to their customers and eventually restore the public's faith in the banking system.
For a firm, the production function represents the relationship between
a. implicit costs and explicit costs. b. quantity of inputs and total cost. c. quantity of inputs and quantity of output. d. quantity of output and total cost.
Which of the following is an example of customer discrimination?
a. A foreign government prevents women from legally working as teachers. b. White theater goers prefer to watch movies with white stars rather than black stars. c. Customers prefer more experienced lawyers over less experienced ones. d. All of the above are correct.