In foreign exchange markets, who demands dollars and who supplies dollars?
What will be an ideal response?
Foreign residents buying U.S. goods, services, or assets demand dollars and U.S. residents buying foreign goods, services, or assets supply dollars. In foreign exchange markets, the supply of dollars is a demand for foreign currency and the supply of a foreign currency is a demand for dollars.
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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
In markets, people's decisions are coordinated by
A) specialization according to absolute advantage. B) changes in property rights. C) learning-by-doing. D) adjustments in prices.
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.