The value of the dollar relative to the euro would increase if
A. the supply of dollars increases and the demand for euros increases.
B. the demand for dollars increases and the supply of euros increases.
C. the demand for dollars decreases and the supply of euros increases.
D. the supply of dollars increases and the demand for euros decreases.
Answer: B
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In the short-run, any rise in the real exchange rate, EP /P, will cause
A) an upward shift in the aggregate demand function and a reduction in output. B) an upward shift in the aggregate demand function and an expansion of output. C) a downward shift in the aggregate demand function and an expansion of output. D) an downward shift in the aggregate demand function and a reduction in output. E) an upward shift in the aggregate demand function but leaves output intact.
In general, economic profits are:
A. greater than accounting profits. B. less than accounting profits. C. the same as accounting profits. D. not comparable to accounting profits.
The typical welfare family consists of a ____________ and ____________ children.
Fill in the blank(s) with the appropriate word(s).
Refer to the diagram. Assume that an inclusive union is formed to bargain with the monopsonistic employer of the question. To what level can this union increase the wage rate without causing the number of jobs to decline below that which the monopsonist would otherwise have provided?
A. D minus A.
B. D.
C. C.
D. B.