If the purchasing power of the dollar is always the same at home and abroad, then the nominal exchange rate defined as units of foreign currency per dollar decreases if the U.S. price level rises more than the price level in foreign countries
a. True
b. False
Indicate whether the statement is true or false
True
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If the educational attainment of a nation's population increases, the economy's production possibilities curve shifts inward
a. True b. False Indicate whether the statement is true or false
A demand curve with unit elasticity can never touch either the vertical or horizontal axes
a. True b. False Indicate whether the statement is true or false
If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms of Y) ____________________ and the PPF for these two goods is ______________________
A) decreases at low levels of X; a straight line B) rises at high levels of Y; bowed-outward C) decreases at high levels of X; bowed-outward D) is always the same; a straight line
Starting at full employment, a business cycle can be described by the following sequence: ... equilibrium, ... equilibrium, ... equilibrium
What will be an ideal response?