If the economy is on the IS curve, but is to the left of the LM curve, aggregate output will ________ and the interest rate will ________
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
B
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If market forces change the exchange rate value of one dollar from 80 yen to 83.25 yen, then the dollar has
a. appreciated. b. depreciated. c. been revalued. d. been devalued.
If a subsidy (going to producers) on a good is eliminated, this would
A. move its supply curve to the right. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. move its supply curve to the left. D. cause a movement along the supply curve to a (higher price, higher quantity) point.
The ability of Nike to spread product development costs over a larger number of units of output arises from:
A. economies of scale. B. minimum efficient scale. C. constant returns to scale. D. diseconomies of scale.
If productivity growth equals 3.0 percent, the contribution from capital growth 1.2 percent and the contribution from labor growth 2.0 percent, then output growth must equal ________
A) 2.2 percent B) 4.2 percent C) 6.2 percent D) 7.2 percent