If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in Japan
A. could either increase or decrease.
B. will remain the same.
C. will decrease.
D. will increase.
Answer: D
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The short-run Phillips curve is
A) U-shaped. B) vertical at the natural unemployment rate. C) upward sloping. D) downward sloping. E) horizontal at the expected inflation rate.
Oil is used to produce gasoline. If the price of oil increases, consumer surplus in the gasoline market
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.
If the wage rate increases:
A. a purely competitive producer will hire less labor, but an imperfectly competitive producer will not. B. an imperfectly competitive producer will hire less labor, but a purely competitive producer will not. C. a purely competitive producer and an imperfectly competitive producer will both hire less labor. D. an imperfectly competitive producer may find it profitable to hire either more or less labor.
Autonomous consumption is consumer spending which is based on income levels
Indicate whether the statement is true or false