Figure 3-22
d
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By fixing its exchange rate, China is most likely
A) achieving a low inflation rate by anchoring to the U.S. inflation rate. B) keeping its export prices low. C) making it easier to compete in world markets. D) Both B and C.
Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 4 percent over the next year, which of the following will occur?
A) Unemployment of university employees will fall. B) The decrease in inflation is expected. C) Real wages for university employees will rise. D) Inflation will be 5 percent the following year.
As the price level decreases, other things being equal, a. aggregate demand increases
b. the quantity of real gross domestic product demanded increases. c. the quantity of real gross domestic product demanded decreases. d. real gross domestic product supplied increases.
When government defines and enforces property rights, this is an example of government as
a. referee. b. regulator of business. c. buyer of goods and services. d. tax collector. e. redistributor.