If inflation in the United States is higher than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will decrease as U.S. imports decrease.
B) Net exports will rise as U.S. imports decrease.
C) Net exports will rise as U.S. exports increase.
D) Net exports will decrease as U.S. exports decrease.
D
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The more variable a firm's demand, the ________ the loss from uncertainty, which means the firm has ________ to gain from a forecast.
A) smaller; less B) smaller; more C) larger; less D) larger; more
An increase in the money supply will cause which of the following to occur?
A) a rightward shift of the aggregate supply curve B) a leftward shift of the aggregate demand curve C) a leftward shift of the aggregate supply curve D) a rightward shift of the aggregate demand curve
“Compensating wage differentials will attract U.S. workers even to otherwise undesirable work.” Explain
What will be an ideal response?