Which of the following is most commonly used to monitor short-run changes in economic activity?
Group of answer choices
the inflation rate.
real GDP.
interest rates.
value of the U.S. dollar in the foreign exchange market.
option 2) real GDP
changes in real GDP is used to measure the short run fluctuations in Economic activity
Which of the following is most commonly used to monitor short-run changes in economic activity? Group...
Which of the following is most commonly used to monitor short-run changes in economic activity? the inflation rate. value of the U.S. dollar in the foreign exchange market. interest rates. real GDP.
6. Which set of changes is definitely predicted to lower Real GDP in the short run? a. The money supply falls and labor productivity rises. b. The U.S. dollar appreciates and wage rates fall. c. The U.S. dollar depreciates and the government passes a law making it easier for entrepreneurs to make a profit. d. Foreign real national income falls and the economy experiences an adverse supply shock. 7. Which set of changes will definitely shift the aggregate demand (AD)...
Changes in Real GDP is used to measure Inflation Exchange rates disposable income Economic Activity (ie. Growth and recessions) During an expansionary Period in the US. You would expect to find which of the following growth rates and unemployment rates 5% :3% 7%:12% -1%: 1% -12%: 7%
Suppose foreign incomes decrease. Which of the following would occur in the short-run? A. Group of answer choices B. A decrease in profits will lead to a decrease in firm production C. Short-run Aggregate Supply will increase D. Short-run Aggregate Supply will decrease E. A decrease in resource costs will increase profits and production Suppose much of a country's infrastructure, buildings, and machinery are destroyed during a war. What would be the long-run effect of this event? Group of answer...
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a. shifts the demand curve for yen leftward, which causes the yen to appreciate. b. shifts the demand curve for yen rightward, which causes the yen to appreciate. c. shifts the demand curve for yen rightward, which causes the yen to depreciate. d. shifts the demand curve for yen leftward, which causes the yen to depreciate. 1b. A relatively high rate of inflation in the...
Which of the following is correct? Group of answer choices When real GDP falls, the rate of unemployment rises. Recessions come at irregular intervals and are easy to predict. Short run fluctuations in economic activity happen only in developing countries. During economic contractions most firms experience rising profits.
Which of the following is most likely to contribute to economic growth? Group of answer choices Flexible property rights that allow the government to seize resources easily for public use. Highly variable inflation rates A stable, predictable legal system (i.e., rule of law) Trade barriers that keep foreign goods and services out of the country
Deflation power parity is a situation in which goods cost the same in one country as in another when prices are compared using the market exchange rate. Group of answer choices True False 2. Foreign exchange rates for the U.S. dollar change constantly as supply and demand conditions change. Group of answer choices True False 3. According to purchasing power parity, when should a nation's currency appreciate? Group of answer choices When it experiences lower inflation than its trading partners...
2. Match the following terms with their definitions Answers Misperceptions Theory Exchange-rate effect Interest-rate effect Sticky-Wage Theory Full-employment output Options The production of goods and services that an economy achieves in the long run when unemployment is at its normal rate a. b. The short-run aggregate supply curve slopes upward because nominal wages are slow to adjust to changing economic conditions. When a fall in the U.S. price level causes U.S. interest rates to fall, the real value of the...