In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic money supply increases
A) domestic output, but has no effect on the domestic price level or the nominal exchange rate.
B) the domestic price level, but has no effect on domestic output or the nominal exchange rate.
C) the nominal exchange rate, but has no effect on domestic output or the domestic price level.
D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
D
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Which of the following would NOT shift an industry's supply of labor curve?
A) The wage rate in the particular industry falls. B) Wage rates in industries using similar labor rise. C) Working conditions within the industry become less desirable. D) Wage rates in other industries fall.
The longer the time period that suppliers have to adjust to price changes, the
A) greater will be the price elasticity of supply. B) lower will be the price elasticity of supply. C) lower will be the price elasticity of demand. D) greater will be the price elasticity of demand.
Profit maximizing (or loss minimizing) level of output
A. is OR.
B. is OS.
C. is OT.
D. None of the choices are correct.
If the economy were producing at point Z and moved to point D,
A. it could only produce more butter at the sacrifice of some gun production.
B. it could only produce more guns at the sacrifice of some butter production.
C. it could produce more guns and more butter at the same time.
D. it would be impossible to produce more guns without the sacrifice of some butter production.