Refer to Figure 24-2. Ceteris paribus, an increase in productivity would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
A
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Refer to Figure 19.3. At the exchange rate of 90 yen per dollar, the United States is experiencing a
A) balance of payments deficit. B) current account deficit. C) capital account surplus. D) balance of payments surplus.
A recession abroad would
a. increase U.S. net exports and increase aggregate demand. b. increase U.S. net exports and increase aggregate supply. c. reduce U.S. net exports and reduce aggregate demand. d. reduce U.S. net exports and increase aggregate demand.
If cable TV service and satellite TV service are substitutes,
a. a decrease in the price of cable will decrease the demand for satellite TV. b. an increase in the price of cable will decrease the demand for satellite TV. c. an increase in the price of cable will generally have no effect on the demand for satellite TV. d. an increase in the price of cable will shift the demand curve for satellite TV to the left.
If business decision makers expect that the inflation rate will increase in the near future,
a. long-run aggregate supply will increase. b. long-run aggregate supply will decrease. c. short-run aggregate supply will increase. d. short-run aggregate supply will decrease.