The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to ________ real interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant
A) raise; lowering
B) raise; raising
C) reduce; lowering
D) reduce; raising
A
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Job rationing occurs when the real wage is ________ the equilibrium level and there is a ________ of labor
A) below; surplus B) equal to; shortage C) above; surplus D) above; shortage E) below; shortage
In order to predict the marginal rate of return on investment, producers must forecast the interest rate
a. True b. False
If Germany can make compact cars more efficiently than Russia, it enjoys
A. a comparative advantage. B. an absolute advantage. C. no advantage.
As shown in Exhibit 3, ______ has ______ in producing both cloth and food.
a. Calvin; an absolute advantage
b. Calvin; a comparative advantage
c. Wendy; an absolute advantage
d. Wendy; a comparative advantage