ECO 160 FINAL

Increases in income in the United States cause U.S. citizens to buy more imports from China. This increases income in​ China, and thus Chinese citizens will buy more imports from the United States. This in turn increases U.S. income. -The statement above is an example of -the trade feedback effect. -the​ open-economy multiplier. -the gains from trade. -the price feedback effect.

찾아봐야됨

During 2006 a leading auto manufacturer produced $20 million worth of SUVs. However, due to soaring gas​ prices, the sale of SUVs became sluggish and by the end of 2006 only $15 million worth of SUVs were sold. As for the contribution of the SUVs to​ GDP, -$20 million are added to​ 2006's GDP, all as consumption. -$15 million are added to​ 2006's GDP, all as private investment. -$20 million are added to​ 2006's GDP with $15 million as consumption and $5 million as private investment. -$15 million are added to​ 2006's GDP, all as consumption.

$20 million are added to​ 2006's GDP with $15 million as consumption and $5 million as private investment.

You are laid off from your job because of a general downturn in economic activity. This is an example of -frictional unemployment -cyclical unemployment -structural unemployment -seasonal unemployment

- cyclical unemployment

If the inflation rate rises by 6 percent, then​ ____________. -aggregate demand decreases. -aggregate demand is unchanged. -there is a movement along the aggregate demand line. - aggregate demand increases.

- there is a movement along the aggregate demand line.

It can be argued that minimum wage laws raises the unemployment rate for teenagers as a group. In response to this​ problem, Congress established a​ sub-minimum wage for teenagers. It allows employers to hire teenagers at an opportunity wage of -$4.25 for up to 90 days. -$5.15 until their 21st birthday. -$4.25 for up to six months. -$5.15 for up to 90 days.

-$4.25 for up to 90 days.

The graph shows two points A and B on the consumption​ function, C, of a small country Tynika. Marginal Propensity to Consume (MPC) is (그래프) -0.50 -0.90 -0.75 -not possible to determine without additional information

-0.50

Suppose, you are lending money to your friend Julia and you want a real rate of return of 6.50​%. Furthermore, you expect the inflation rate to be 4.00​%. Which of the following interest rates should you​ charge? -10.50​% -2.50​% -6.50​% -5.25​%

-10.50​%

Given the information in the​ table, how many people are in the labor​ force? (차트) -155 million -166.5 million -181.3 million -167.7 million

-166.5 million

Since 1970 the Fed has faced a​ "binding situation" during the -oil price shocks of the 1970s. -stagflation period of the late 1970s and early 1980s. -2008-2012 period. -1990-1991 and 2001 recessions.

-2008-2012 period.

Federal government consumption expenditures make up about​ ___ of total government expenditures. -10 percent -50 percent -37 percent -28 percent

-28 percent

Which of the following is part of the U.S. supply of foreign​ exchange? -A U.S. citizen wishes to buy stock in a Japanese corporation. -A French citizen wishes to travel to the United States and stay in a hotel in New York City. -A Mexican citizen wishes to purchase stock in​ Sony, a Japanese company. -A U.S. company wishes to buy parts from a Canadian company. -A U.S. citizen wishes to buy euros to spend on French champagne.

-A French citizen wishes to travel to the United States and stay in a hotel in New York City.

Which of the following is part of the U.S. demand for foreign​ exchange? -A U.S. citizen wishes to buy stock in a Japanese corporation. -A French citizen wishes to travel to the United States and -stay in a hotel in New York City. -A Swedish company wishes to purchase a U.S. company. -A U.S. citizen wishes to sell euros brought back from a European vacation. -A Mexican citizen wishes to purchase stock in​ Kodak, a U.S. company.

-A U.S. citizen wishes to buy stock in a Japanese corporation.

Which of the following transactions would be recorded as a debit to the U.S. current​ account? -A U.S. citizen purchases stock in an Australian company. -A U.S. investor receives dividends from holdings of stock in an Italian company. -A U.S. company sells some jam to supermarkets in the United Kingdom. -A U.S. citizen receives a birthday gift of money from her grandmother in France. -A U.S. exporter purchases shipping insurance from a German company.

-A U.S. exporter purchases shipping insurance from a German company.

Many cruise lines offer​ 5-day trips. A disproportionate number of these trips leave port on Thursday and return late Monday. Why might this be​ true? -People booking these trips can take a long weekend and schedule vacation time for only three of the five​days, missing less work than they would by traveling Monday through Friday. -Since the supply of staterooms on an individual ship is​ fixed, the higher demand generated by the long weekend increases the equilibrium price that a cruise line is able to charge for these​trips, increasing the per-passenger revenue the cruise line receives. -A and B only. -None of the above.

-A and B only.

The fundamental decision-making units in a market economy are: -Firms - the primary producing units in the economy. -Households - the consulting units in the economy. -Government - the primary authority in the economy. -All of the above. -A and B only.

-A and B only.

In order for an economy to be​ successful, there must be some form of organization. Firms produce products that are marketed and sold. There must be people who desire to purchase and consume the products that are produced by the firms. This group of individuals that consumes the products that are produced in a market economy are known as households. Which of the following is true in a market​ economy? -A household is best represented by a married couple with two cats and a dog. -A household is often the primary production unit in a market economy. -A household demands goods and services from the market and supplies factor inputs. -All households except the very wealthy are constrained by limited incomes.

-A household is often the primary production unit in a market economy.

Suppose that the inflation rate is higher than​ expected, which of the following groups is most likely to be adversely affected by this unexpected​ inflation? -An individual with a savings account interest rate that adjusts with inflation. -A homeowner scheduled to make fixed interest rate mortgage payments. -A college student with a fixed interest rate college loan. -A mortgage company scheduled to receive fixed interest rate mortgage payments.

-A mortgage company scheduled to receive fixed interest rate mortgage payments.

Which of the following changes will unambiguously increase consumption expenditure at every level of income and shift the consumption function​ upward? -An increase in interest rate and an increase in wealth -An increase in wealth and expectations of lower income in the future -A reduction in interest rate and expectations of lower income in the future -A reduction in interest rate and expectations of higher income in the future

-A reduction in interest rate and expectations of higher income in the future

Economic growth generally refers to the increase in productivity attributable to -technological change. -innovation. -capital accumulation. -government management. -A, B, and C are correct.

-A, B, and C are correct.

Suppose all tax collections are fixed and independent of income and all spending and transfer programs are also fixed and do not depend on the state of the economy. In such a situation what is the relationship between the full employment deficit and actual budget​ deficit? -Full employment budget deficit exceeds actual budget deficit if the economy is in a recession. -Actual budget deficit exceeds full employment budget deficit if the economy is in a recession. -Full employment budget deficit exceeds actual budget deficit if the economy is in a boom. -Actual budget deficit is the same as the full employment budget deficit.

-Actual budget deficit is the same as the full employment budget deficit.

During the last half of the​ 1990's the federal government budget went from deficit to surplus. Since​ 2001, though, the reverse is true. What has significantly contributed to recent budget deficits​? -Increased Medicare payments -The war in Iraq -Lower tax rates -All of the above.

-All of the above.

Which of the following is a reason to study​ economics? -To understand society and to learn a new way of thinking. -To understand global affairs. -To be an informed citizen. -All of the above.

-All of the above.

"As long as all resources are fully employed and every firm in the economy is producing its output using the best available technology, the result will be efficient." Which of the following is not an additional requirement for efficiency? -The only way to produce more of one good is to produce less of another -All resources must be devoted to the production of a single good. -Maximum combinations of output must be produced. -The mix of output must reflect the desires of consumers.

-All resources must be devoted to the production of a single good.

Which of the following has NOT been offered by economists as an explanation for the U.S. productivity slowdown of the late 1970s and early​ 1980s? -an American moral and spiritual crisis -high energy costs -diminished spending on​ R&D -a low saving rate -increased regulation of businesses

-an American moral and spiritual crisis

The following statements contain common errors. Identify and explain why each error: Demand increases, causing prices to rise. High prices cause demand to fall. Therefore, prices fall back to their original levels. -When demand increases, it creates a surplus, causing prices to fall. Prices will fall until quality demanded once again equals quantity supplied at the new equilibrium price. Ceteris paribus, prices are constant at the new equilibrium. -An increase in demand causes a shortage of the current price. Prices will rise until quantity demanded once again equals supplied at the new equilibrium price. Ceteris paribus, prices are constant at a new equilibrium. -An increase in demand causes at shortage at the current price. Prices will fall until quantity demanded once again equals supplied at the new equilibrium price. Ceteris paribus, prices are constant at a new equilibrium. -Increasing demand causes prices to fall. Prices will then readjust to a new equilibrium level lower than the initial equilibrium level.

-An increase in demand causes a shortage of the current price. Prices will rise until quantity demanded once again equals supplied at the new equilibrium price. Ceteris paribus, prices are constant at a new equilibrium.

During the 1960s there seemed to be an obvious​ trade-off between inflation and unemployment​ (lower inflation implies higher​ unemployment). ​ However, from the 1970s​ onward, that relationship appeared to breakdown. Which of the following are possible causes of this apparent​ breakdown? -The AS shifts but the AD does not. -The AD curve shifts but AS does not. -Both the AD and AS supply curve shift. -Both A and C

-Both A and C

Study the table on the right. Which of the following could explain why the​ long-term rate was higher than the​ short-term rate in 1993 but lower in 1980. (차트) -In​ 1980, most debt holders believed that the inflation rate would decrease in the future. In​ contrast, in​ 1993, inflation was unusually low and debt holders were wary of higher inflation in the future. -1980 was an anomaly referred to as an inverted yield curve. It was an anomaly because​ long-term rates are always higher than​ short-term rates. Many economists believe it was the cause of the rather severe 1981 recession. -Expected future​ short-term rates were falling in 1980 so that the average of the current and expected future​ short-term rates was lower. In​ 1993, the current​short-term rate was low and expected future​ short-term rates were rising so that the average of these rates was higher. -Both A and C are correct

-Both A and C are correct

Before​ 1995, proponents of the NAIRU theory argued that the value of the NAIRU in the U.S. was around 6 percent. After​ 1995, the unemployment rate steadily​ declined, and by the year 2000 it was 3.9 percent. ​ Further, the 1995 to 2000 period saw slightly declining inflation. This evidence would suggest that -increased worker productivity led to a leftward shift of the PP curve. -increased worker productivity led to a rightward shift of the PP curve. -the NAIRU theory is vacuous​ (without meaning). -Both A and C are correct.

-Both A and C are correct.

As the economy​ contracts, the government deficit grows because -household income decreases​, decreasing tax revenues. -transfer payments​ increase, increasing government spending. -fewer people are​ unemployed, decreasing tax revenues. -Both a and b. -All of the above.

-Both a and b.

Which of the following statements is​ true? -Each year the budget deficit of the federal government adds to the federal debt. -Federal debt is another name for federal budget deficit. -Federal debt is only what the federal government owes to other countries. -Each year the change in the federal budget deficit is equal to the level of the federal debt.

-Each year the budget deficit of the federal government adds to the federal debt.

Which field of economics deals primarily with the problems faced by​ low-income countries? -Economic development. -Industrial organization. -Comparative economic systems. -Public economics.

-Economic development.

Ford Motor Co. produces a Focus automobile in its factory in Germany and sells it in India. This transaction is included in -German GDP under exports. -U.S. GDP under exports. -Indian GDP under imports -both German and U.S.​ GDP, with fifty percent of the value in each​ country's exports.

-German GDP under exports.

In a laissez-faire economic system: -The government takes on a substantial degree of economics and regulatory control over the private sector. -Government's role is limited to protecting and enforcing property rights and providing public goods. -The government owns most nonhuman productive resources. -Government's role includes planning the economy's output.

-Government's role is limited to protecting and enforcing property rights and providing public goods.

Which of the following best describes the price feedback​ effect? -Higher prices for goods entering the United States increases the U.S. price level. -Higher incomes in Canada increase imports from the United​ States, which in turn increases U.S. income and Canadian exports. -Higher prices in Canada increases the price of imported inputs in the United​ States, which in turn raise the price of U.S. exports to Canada. -Higher import prices increase the demand for domestic​ goods, increasing aggregate demand and thus inflation. All of the above are examples of the price feedback effect.

-Higher incomes in Canada increase imports from the United​ States, which in turn increases U.S. income and Canadian exports.

When considering the circular flow of economic activity​, households supply resources​ (inputs) such that the resources supplied by the households may be thought of as being provided in individual markets. Which of the following accurately describes this​ statement? -In the capital​ market, households loan accumulated savings to firms in exchange for labor income. -In the capital​ market, households loan inherited savings to firms in exchange for claims on past profits. -In the labor​ market, households earn wages by supplying labor to firms that demand it. -In the land​ market, households supply land or raw materials in exchange for claims on future profits.

-In the labor​ market, households earn wages by supplying labor to firms that demand it.

During the late 1970s and early 1980s the Fed used monetary policy primarily to -promote full employment. -lessen the deviation of real GDP from its trend. -fight inflation. -stabilize the international value of the dollar.

-fight inflation.

According to the National Bureau of Economic Research​ (NBER), what has been dubbed the Great Recession officially began in December 2007 and ended in June 2009. During this​ recession, national output of goods and services fell from the second quarter of 2008 until the end of the recession in the second quarter of​ 2009, and then slowly began to increase. When the recession was officially declared as being​ over, the unemployment rate continued to​ rise, reaching 10 percent in October 2009 and remained close to that level until April 2010 when it slowly started to decline. During that​ 10-month period, the net loss in jobs in the U.S. economy was close to 1.4 million. Which of the following explains how it is possible that output can rise while at the same time employment​falls? -Increase in labor productivity. -Increase in population. -Rise in the capital stock. -Decrease in labor productivity.

-Increase in labor productivity.

According to the real wealth effect (or real balance​ effect), a decrease in the price level -does not affect the purchasing power of wealth in the long run. - does not affect the purchasing power of any type of wealth in the short run. -Increases consumers' expenditures due to an increase in the purchasing power of household wealth. -Decreases consumers' expenditures due to a decrease in the purchasing power of household wealth.

-Increases consumers' expenditures due to an increase in the purchasing power of household wealth.

What two important functions does a market system perform? -It provides an automatic mechanism for distributing scarce goods and services and determines both the allocation of resources among producers and the final mix of outputs. -It provides a manual mechanism for distributing scarce goods and services and determines both the allocation of resources among producers and the final mix of outputs. -It aids in the formation of alliances among businesses and provides a platform for intervention by state authorities. -It rations goods and services through fluctuating prices and facilitates the distribution of resources through government fiat.

-It provides an automatic mechanism for distributing scarce goods and services and determines both the allocation of resources among producers and the final mix of outputs.

Which of the following statements uses the concept of equity to argue against the legalization of casino ​gambling? -Legalized casino gambling places an unfair burden on​ nongamblers, who must now tolerate the increased traffic that the activity necessarily produces. -Legalized casino gambling will generate additional tax​ revenues, which the state can use for gambling addiction programs. -If gamblers are able to gamble at less cost and nongamblers receive the benefits of additional tax​ revenue, then it is an equitable activity. -All of the above.

-Legalized casino gambling places an unfair burden on​ nongamblers, who must now tolerate the increased traffic that the activity necessarily produces.

As a measure of the money​ supply, M1 differs from M2 in that -M2 only includes broad money. -M2 includes M1 plus savings​ accounts, money market​ accounts, and other near monies. -M1 is a measure of actual​ money, while M2 is a measure of near money assets. -M2 includes M1 plus savings​ accounts, and money market​ accounts, but not near monies.

-M2 includes M1 plus savings​ accounts, money market​ accounts, and other near monies.

Which of the following describes the economic system in the United​ States? -Pure communism. -Laissez-faire capitalism. -Mixed economy. -Socialism.

-Mixed economy.

Many workers commit to employment contracts with 1 to 3 year terms. These contracts stipulate​workers' wages for each year of the contract. Given the uncertainty of future economic​ conditions, why do workers and firms bind themselves in this​ way? -Workers value job security over potentially higher wages. -Unions require​ long-term contracts. -Explicit contracts make workers accountable for the quality of their work. -Negotiating wages is costly.

-Negotiating wages is costly.

When a price ceiling is​ imposed, the price system is prohibited from rationing the product in the market in which the ceiling was imposed. What other alternative rationing methods are available to determine who receives the scarce​ commodity? -Queuing, shortages, and price increases. -Queuing, favoring​ customers, and ration coupons. -Queuing, shortages, and favoring customers. -Queuing, rationing, and ration coupons.

-Queuing, favoring​ customers, and ration coupons.

Time lags can limit the effectiveness​ of, and​ complicate, stabilization policy. When conducting monetary​policy, which of the following lag types must policy makers consider most​ carefully? -Recognition lags -Implementation lags -Response lags -Political lags

-Response lags

Who among the following will not be included as part of the labor force​? -John, who is​ self-employed. -Linda, who only works two hours a week. -Sally, who has given up looking for a job because she could not find one. -Ron, who retired but still works​ part-time.

-Sally, who has given up looking for a job because she could not find one.

Stabilization policy has the following objective​(s​)​: -Sustainable​ growth, full​ employment, and stable prices. -Smooth fluctuations in output. -Reduce inflation to zero. -Smooth fluctuations in​ output, and maintain inflation at a rate consistent with sustainable growth and full employment.

-Smooth fluctuations in​ output, and maintain inflation at a rate consistent with sustainable growth and full employment.

From a macroeconomic​ perspective, the​ "best" stock market index is -the NASDAQ Composite. -the American Stock Exchange. -the Dow Jones Average. -Standard and​ Poor's 500​ (S&P 500).

-Standard and​ Poor's 500​ (S&P 500).

What institution has formal responsibility for setting U.S. monetary​ policy? -The Board of Governors -The FOMC​ (Federal Open Market​ Committee) -The Congress -Each Federal Reserve district sets policy for its region

-The FOMC​ (Federal Open Market​ Committee)

When the interest rate is very low—well below what would be considered normal—households and firms will expect the rate to rise in the long run. How does this affect the demand for holding money in the​ present? -The money demand curve will be nearly flat but downward sloping on the expectation that bond prices are going to rise. -The money demand curve will be nearly flat but downward sloping on the expectation that bond prices are going to fall. -The money demand curve would be horizontal and the bond market will collapse. -The money demand curve will become very steep and downward sloping on the expectation that bond prices are going to fall.

-The money demand curve will be nearly flat but downward sloping on the expectation that bond prices are going to fall.

Suppose the Treasury of the United States issues bonds and sells them to the public to finance the deficit. What happens to the money supply and​ why? A. The money supply increase because government borrowing increases reserves in the banking system. B. The money supply decreases because government borrowing reduces free reserves in the banking system. C. The money supply remains unchanged because there is no effect on the spending multiplier. D. The money supply remains unchanged because every dollar taken in by the Treasury goes right back into circulation through government spending.

-The money supply remains unchanged because every dollar taken in by the Treasury goes right back into circulation through government spending.

An analysis of a​ large-scale survey of consumer food purchases by Mark Aguiar and Erik Hurst indicates that retired people spend less for the same market basket of food than working people do. Use the concept of opportunity cost to explain this fact. -The opportunity cost of time for retired people is lower than the opportunity cost of time for working​ people, so retirees spend more time pursuing their favorite leisure activities and less time shopping for necessities. -The opportunity cost of time for retired people is lower than the opportunity cost of time for working​ people, so retirees choose to spend more time shopping for​ lower-priced items compared to people who are still working. -The opportunity cost of time for retired people is identical to the opportunity cost of time for working​ people, because each minute is equally valuable regardless of​ one's employment status. -The opportunity cost of time for retired people is higher than the opportunity cost of time for working​ people, so retirees choose to search longer for bargains for the items they buy.

-The opportunity cost of time for retired people is lower than the opportunity cost of time for working​ people, so retirees choose to spend more time shopping for​ lower-priced items compared to people who are still working.

An economic system is a social system in which: -Institutions matter very little. -The three basic economic questions are addressed. -Government does not exist. -Only money matters.

-The three basic economic questions are addressed.

Automatic stabilizers are mechanisms built into the economy that tend to reduce the multiplier effect. Which of the following items act as automatic​ stabilizers? -Private investment spending -Social security benefits -Unemployment compensation -Budget deficit

-Unemployment compensation

A stock is -a certificate that certifies an increase in the value of an asset. -a certificate that certifies when the owner of an asset actually sells it for more than he paid for it. -a document that formally promises to pay back a loan under specified​ terms, usually over a specific time period. -a certificate that certifies ownership of a certain portion of a firm.

-a certificate that certifies ownership of a certain portion of a firm.

Government interest payments as a percentage of GDP have fallen dramatically since 1995. This can be attributed to -lower interest rates. -a decrease in government debt until​ 2001, and lower interest rates thereafter. -a decrease in government debt. -lower interest rates and a decrease in government debt.

-a decrease in government debt until​ 2001, and lower interest rates thereafter.

Deflation is a phenomenon that describes -a very rapid increase in the overall price level. -a decrease in the rate of inflation. -an increase in the rate of inflation. -a decrease in the overall price level.

-a decrease in the overall price level.

A bond is -Ia certificate that certifies ownership of a certain portion of a firm. -Ia certificate that certifies when the owner of an asset actually sells it for more than he paid for it. -Ia document that formally promises to pay back a loan under specified​ terms, usually over a specific time period. -Ia certificate that certifies an increase in the value of an asset.

-a document that formally promises to pay back a loan under specified​ terms, usually over a specific time period.

Currently, the​ world's exchange rate system can be best described as -a pure fixed exchange rate system. -the Bretton Woods system. -a managed floating system. -a floating exchange rate system.

-a managed floating system.

A price floor is: -a maximum price that sellers may charge for a​ good, usually set by government. -a maximum price above which exchange is not permitted. -a minimum price that buyers may charge for a good. -a minimum price below which exchange is not permitted.

-a minimum price below which exchange is not permitted.

The condition that exists when quantity supplied exceeds quantity demanded at the current price​ is: -a shortage or excess demand. -equilibrium. -a surplus or excess supply. -an auction.

-a surplus or excess supply.

If optimistic firms increase investment spending​, then​ ____________. -there is a movement along the aggregate demand line. -aggregate demand increases. -aggregate demand is unchanged. -aggregate demand decreases.

-aggregate demand increases.

Beginning in England in the​ mid-18th century, technical change and capital accumulation sharply increased productivity in which two​ industries? -agriculture and shipbuilding -agriculture and textiles -agriculture and steel making -agriculture and railroading

-agriculture and textiles

Since the year​ 2000, several countries have defaulted on their sovereign bonds. The following table summarizes information on three of those countries that resorted to default. (차트) *Measured by​ JPMorgan's EMBI​ (Emerging Market Bond​ Index) spreads. The spread of an instrument​ (bond) is calculated as the premium paid by an emerging market over a U.S. government bond with comparable maturity​ features; 100 basis points​ = 1%. **Sovereign debt ratings provided by​ Moody's Investors Service The credit ratings made by​ Moody's include the following​ classifications: (차트) In​ mid-2013, when​ Moody's rated the United States sovereign debt at​ Aaa, the benchmark 10 year U.S. treasury bond was yielding 2.20 percent. Given the​ Moody's ratings shown in the top table for​ Argentina, Uruaguay, and​ Ecuador, a reasonable expectation would be that -all three paid slightly higher​ rates, with Argentina and Ecuador paying the most. -all three paid much higher​ rates, with Uruaguay paying the most. -all three paid much higher​ rates, with Argentina and Ecuador paying the most. -none of the above.

-all three paid much higher​ rates, with Argentina and Ecuador paying the most.

Which of the following is the best explanation of the shape of the AD​ curve? The aggregate demand curve slopes downward because -an increase in the price level causes the demand for money to​ rise, driving up the interest rate and discouraging​ investment, which causes aggregate demand to fall. -when the price level is​ lower, people can afford to buy more and aggregate demand rises. -a decrease in the price level drives up interest​ rates, which discourages consumption and aggregate demand falls. -All of the above are good explanations.

-an increase in the price level causes the demand for money to​ rise, driving up the interest rate and discouraging​ investment, which causes aggregate demand to fall.

The Dow Jones Industrial Average is -an index based on the stock prices of the largest 500 firms traded on the New York Stock​Exchange, the NASDAQ Stock​ Market, and the American Stock Exchange. -an index based on the stock prices of over​ 5,000 companies traded on the NASDAQ Stock Market. -an index based on the stock prices of 30 actively traded large companies. It is the oldest and most widely followed index of stock market performance. -an index based on the stock prices of 50 actively traded large companies. It is the newest and least widely followed index of stock market performance.

-an index based on the stock prices of 30 actively traded large companies. It is the oldest and most widely followed index of stock market performance.

The NASDAQ Composite is -an index based on the stock prices of over​ 5,000 companies traded on the NASDAQ Stock Market. -an index based on the stock prices of the largest 500 firms traded on the New York Stock​Exchange, the NASDAQ Stock​ Market, and the American Stock Exchange. -an index based on the stock prices of 30 actively traded large companies. -an index based on the stock prices of under​ 5,000 companies traded on the NASDAQ Stock Market.

-an index based on the stock prices of over​ 5,000 companies traded on the NASDAQ Stock Market.

The Standard and​ Poor's 500​ (S&P 500) is -an index based on the stock prices of the largest 500 firms traded on the New York Stock​ Exchange, the NASDAQ Stock​ Market, and the American Stock Exchange. -an index based on the stock prices of 30 actively traded large companies. -an index based on the stock prices of the largest 500 firms traded on the New York Stock​ Exchange, the NASDAQ Stock​ Market, and the Chicago Mercantile. -an index based on the stock prices of over​ 5,000 companies traded on the NASDAQ Stock Market.

-an index based on the stock prices of the largest 500 firms traded on the New York Stock​ Exchange, the NASDAQ Stock​ Market, and the American Stock Exchange.

People who are unemployed are those who -are unable to work. -are searching for work but cannot find a job. -have given up their search for employment. -are unwilling to work.

-are searching for work but cannot find a job.

Using money as a medium of exchange is more efficient than barter because -goods and services cannot be used as a unit of account. -money is the only asset that can be used as a store of value. -barter requires a double coincidence of wants. -money dominates all goods and services as a store of value.

-barter requires a double coincidence of wants.

Short-run fluctuations of an economy are called -a cyclical deficit. -a trough. -an expansion. -business cycles.

-business cycles.

The capacity for long-run economic growth for an economy is determined -only by labor and capital productivity. -only by its infrastructure. -by the size of its labor​ force, its capital​ stock, and productivity of labor and capital. -only by technology.

-by the size of its labor​ force, its capital​ stock, and productivity of labor and capital.

Expansionary monetary policy has people concerned about future​ inflation, which is causes an increase in expected inflation. This will -not affect the Phillips Curve. -cause a breakdown of the​ unemployment-inflation tradeoff. -cause the Phillips Curve to shift left. -cause the Phillips Curve to shift right.

-cause the Phillips Curve to shift right.

Imports are subtracted in the expenditure approach to calculating​ GDP, because -consumption, investment, and government spending are overstated as these include expenditures on both domestic and foreign goods. -U.S. has a negative balance of trade. -the U.S. economy is not open to foreign trade. -consumption, investment, and government spending are understated as these include expenditures on both domestic and foreign goods.

-consumption, investment, and government spending are overstated as these include expenditures on both domestic and foreign goods.

A fundamental problem with the Bretton Woods system was that -countries with balance of payments deficits were forced to increase the value of their​ currencies, while countries with surpluses did not have to decrease the value of their currencies. -countries with balance of payments deficits were forced to drop out of the system. -countries with balance of payments surpluses were forced to drop out of the system. -countries with balance of payments deficits were forced to decrease the value of their​ currencies, while countries with surpluses did not have to increase the value of their currencies.

-countries with balance of payments deficits were forced to decrease the value of their​ currencies, while countries with surpluses did not have to increase the value of their currencies.

Expansionary fiscal policy is used by the government to -reduce the national debt. - reduce the budget deficit. -control inflation. -create new jobs in the economy.

-create new jobs in the economy.

The total loss of producer and consumer surplus from underproduction or overproduction​ is: -queuing. -deadweight loss. -a black market. -a​ free-market result.

-deadweight loss.

Empirical studies of labor markets have identified several benefits firms receive from paying workers more than the​ market-clearing wage. These studies tend to support the -COLA theory. -efficiency wage theory. -minimum turnover theory. -productivity wage theory.

-efficiency wage theory.

The problem of solving global warming and the problem of attaining adequate household saving are​similar, because both -require no commitments of resources today. -emphasize the​ trade-off between present and future. -are unrealistic goals. -are major concerns for developed nations only.

-emphasize the​ trade-off between present and future.

Banks borrow not only from the Fed but also from each other. What is the interest rate in this market called? - bank reserve rate -federal funds rate -prime rate -discount rate

-federal funds rate

GDP is different from final sales since -final sales ignores changes in​ inventory, which are included in GDP calculation. -final sales measures only domestic​ sales, but GDP considers exports as well. -final sales measures only what the consumers​ buy, but GDP is the sum total of​ consumption, investment, government purchases and net exports. -measurements of GDP and final sales are subject to statistical errors.

-final sales ignores changes in​ inventory, which are included in GDP calculation.

Economists who hold the classical view of the labor market believe that -only monetary policy can have any effect on employment and real GDP. -fiscal and monetary policy have little or no effect on employment and real GDP. -the aggregate supply curve is upward sloping. -only fiscal policy can have any effect on employment and real GDP.

-fiscal and monetary policy have little or no effect on employment and real GDP.

(차트) According to the aggregate production function displayed by the table shown​ above, an increase in the​country's labor supply -produces economic growth even with falling labor -productivity -exhibits increasing returns to labor -generates more output but a lower standard of living. -generates more output and hence a higher standard of living.

-generates more output but a lower standard of living.

One reason why GDP is not a good measure of national​ well-being is that it fails to take into account -consumption of services such as health care. -profits of businesses. -income distribution. -transfer payments.

-income distribution.

The term​ 'stagflation' was created in the​ 1970's to describe an economy experiencing both -inflation and economic stagnation. -deflation and unemployment. -inflation and growth. -inflation and budget deficit

-inflation and economic stagnation.

The Phillips Curve models the relationship between​ __________________________. It asserts that these variables are​________________ correlated. -inflation and​ unemployment; negatively -price level and​ unemployment; positively -inflation and​ unemployment; positively -price level and​ unemployment; negatively

-inflation and​ unemployment; negatively

Producer surplus: -is the difference between the current market price and the cost of production for the firm. -is the difference between the maximum amount a person is willing to pay for a good and its current market price. -is the difference between the true value of a good and the amount the firm wants to receive. -represents the minimum amount a firm must receive for a particular good in order to be able to produce the good.

-is the difference between the current market price and the cost of production for the firm.

Producer​ surplus: -is the difference between the maximum amount a person is willing to pay for a good and its current market price. -represents the minimum amount a firm must receive for a particular good in order to be able to produce the good. -is the difference between the current market price and the cost of production for the firm. -is the difference between the true value of a good and the amount the firm wants to receive.

-is the difference between the current market price and the cost of production for the firm.

Consumer​ surplus: -is the difference between the current market price and the cost of production for the firm. -represents the maximum amount a person is willing to pay for a particular good. -is the difference between the true value of a good and the amount a person is willing to pay for the good. -is the difference between the maximum amount a person is willing to pay for a good and its current market price.

-is the difference between the maximum amount a person is willing to pay for a good and its current market price.

The opportunity cost of holding money -decreases with inflation. -decreases as one accumulates more of it. -is the forgone interest from holding bonds. -increases as the holding return on bonds fall.

-is the forgone interest from holding bonds.

Assume the classical view of the labor market. During a​ recession, -labor demand will​ increase, the real wage will​ fall, and there will be no unemployment. -labor demand will​ decrease, the real wage will​ fall, and there will be no unemployment. -labor demand will​ decrease, the real wage will​ fall, and unemployment will increase. -labor demand will​ increase, the real wage will​ increase, and unemployment will increase.

-labor demand will​ decrease, the real wage will​ fall, and there will be no unemployment.

The classical model is based on the critical assumption that -markets always clear. -the​ self-correcting mechanism does not work. -markets are always perfectly competitive. -prices and wages are rigid.

-markets always clear.

Your college bookstore receives a shipment of new economics texts for​ $60,000. This transaction is -not included in GDP since books are exempt from GDP calculation. -included in GDP calculation under consumption. -included in GDP under investment since the bookstore -earns a profit by selling these books to students. -not included in GDP​ calculation, since books bought by -the bookstore are intermediate goods.

-not included in GDP​ calculation, since books bought by -the bookstore are intermediate goods.

The labor demand curve shows the -number of workers that want to work at each wage rate. -quantity of goods and services that the workers want to buy at each price. -number of workers that the firms want to hire at each wage rate. -quantity of goods and services that the firms want to sell at each price.

-number of workers that the firms want to hire at each wage rate.

The CPI tends to -overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items. -estimate inflation correctly. -overestimate inflation by excluding the prices of intermediate products. -underestimate the extent of inflation when prices increase rapidly.

-overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items.

One reason why GDP is not a good measure of national​ well-being is that it fails to take into account -population (원래는 pollution이라고 써져있었음). -transfer payments. -consumption of services such as health care. -indirect business taxes.

-population (원래는 pollution이라고 써져있었음).

The derivation of an​ economy's aggregate demand (AD) curve -requires the summation of all market demand curves in the economy. -employs the same ceteris paribus assumption used to obtain a simple market demand curve. -requires knowledge regarding the interaction between the goods market and the money market. -is based upon​ economy-wide substitution and income effects.

-requires knowledge regarding the interaction between the goods market and the money market.

To fund its budget​ deficit, the government can borrow by -increasing taxes. -issuing stocks to the public. -applying for a loan from banks. -selling treasury bills to the public.

-selling treasury bills to the public.

If the economy is operating on the vertical part of the AS curve and the Fed pursues a policy of stabilizing interest rates in the face of expansionary fiscal​ policy, the result will most likely be -deflation. -inflation. -continuous expansion. -sustained inflation.

-sustained inflation.

Suppose that planned investment is fixed in an economy. Now if all individuals attempt to save​ more, -the aggregate saving function shifts​ up, aggregate saving​ increases, and equilibrium income decreases. -the aggregate saving function does not​ change; the amount of aggregate saving remains​unchanged, but only equilibrium income decreases. -the aggregate saving function shifts​ up, equilibrium income​ decreases, but the effect on aggregate saving depends on the value of MPS. -the aggregate saving function shifts​ up, equilibrium income​ decreases, but aggregate saving remains the same.

-the aggregate saving function shifts​ up, equilibrium income​ decreases, but aggregate saving remains the same.

When the interest rate decreases​, -the cost of borrowing decreases and the consumption function shifts up. -the cost of borrowing decreases and the consumption function shifts down. -the consumption function shifts down since individuals face smaller debt. -only the dollar amount of credit card purchases decreases.

-the cost of borrowing decreases and the consumption function shifts up.

Assume that congress and the president make tax and spending decisions without a​ balanced-budget amendment or any other deficit targeting measure. In the event of a negative demand​ shock, -the deficit would​ decrease, lessening the decrease in AD caused by the shock. -the deficit would​ increase, lessening the decrease in AD caused by the shock. -the deficit would​ increase, worsening the decrease in AD caused by the shock. -the deficit would​ decrease, worsening the decrease in AD caused by the shock.

-the deficit would​ increase, lessening the decrease in AD caused by the shock.

A circular flow diagram shows -the intersection of aggregate demand and aggregate supply. -a business cycle. -the income received and payments made by each sector of the​ economy: firms,​ households, government, and the rest of the world. -the workings of fiscal and monetary policies.

-the income received and payments made by each sector of the​ economy: firms,​ households, government, and the rest of the world.

If the FOMC orders the open market desk to sell government​ securities, -the money supply will decrease​, and the interest rate will decrease. -the money supply will decrease​, and the interest rate will increase. -the money supply will increase​, and the interest rate will decrease. -the money supply will increase, and the interest rate will increase.

-the money supply will increase​, and the interest rate will decrease.

Suppose that in one month the number of discouraged workers as classified by the Bureau of Labor Statistics increases by​ 50,000. As a​ result, -the number of unemployed workers does not​ change; the size of the labor force falls by​ 50,000; unemployment rate increases. -the number of unemployed workers declines by​ 50,000; the size of the labor force falls by​ 50,000; unemployment rate remains unchanged. -the number of unemployed workers declines by​ 50,000; the size of the labor force does not​change; unemployment rate falls. -the number of unemployed workers declines by​ 50,000; the size of the labor force falls by​ 50,000; unemployment rate falls.

-the number of unemployed workers declines by​ 50,000; the size of the labor force does not​change; unemployment rate falls.

The unemployment rate that is consistent with​ "full employment" and the​ "natural rate of​ unemployment" is -4 percent. -zero. -the sum of the frictional rate and structural rate. -cyclical unemployment.

-the sum of the frictional rate and structural rate.

If the price level increases​, then​ ____________. -aggregate demand increases. -aggregate demand is unchanged. -aggregate demand decreases. -there is a movement along the aggregate demand line.

-there is a movement along the aggregate demand line.

If the economy is operating above potential​ GDP, then -unemployment is above the natural rate and wages will rise. -unemployment is above the natural rate and wages will fall. -unemployment is below the natural rate and wages will fall. -unemployment is below the natural rate and wages will rise.

-unemployment is below the natural rate and wages will rise.

One reason why GDP is not a good measure of national​ well-being is that it fails to take into account -indirect business taxes. -consumption of services such as health care. -depreciation. -value of leisure.

-value of leisure.

What​ if, at a low level of interest​ rates, the money demand curve became nearly​ horizontal, as in the graph at right. That​ is, with interest rates so​ low, the public would not find it attractive to hold​ bonds; thus, money demand would be very high. Many argue that this was the position of the U.S. economy in 2003. If the Fed decided to expand the money supply in the graph shown at​ right, interest rates (그래프) -would rise quickly then fall. -would fall quickly then rise. -would not change. -would change in an indeterminate way.

-would not change.

If the natural rate of unemployment is 6.0​% and the economy has a 9.0​% rate of​ unemployment, then what is the cyclical rate of​ unemployment? A. 3.0 percent. B. 15.0 percent. C. 6.0 percent. D. Cannot be determined.

3.0 percent.

PC​ Bell, a computer manufacturer that sells computer systems directly to​ customers, buys a computer chip for $150, software for $350​, and a printer for $40. If the value added by PC Bell from selling this system​ (including the printer and the​ software) is $1,100​, what is the price at which the system is​ sold? A. $1,640. B. $950. C. $1,100. D. $560.

A. $1,640.

If all​ wages, salaries, welfare​ benefits, and other sources of income were indexed to​ inflation, A. Inflation may not have negative impacts on​ people's purchasing​ power, but it will still have harmful effects on the economy by increasing administrative costs and inefficiencies. B. inflation will benefit both debtors and creditors. C. inflation will have no negative effect on the economy. D. inflation will lower the purchasing power of people on fixed income.

A. Inflation may not have negative impacts on​ people's purchasing​ power, but it will still have harmful effects on the economy by increasing administrative costs and inefficiencies.

(차트있는 문제)The Economics in Practice describes prosperity and recession as they are depicted in literature. In​mid-2009, there was a debate about whether the U.S. economy had entered an economic expansion. Look at the data on real GDP growth and unemployment and describe the pattern since 2007. The debate about whether the U.S. economy had entered an economic expansion in​ mid-2009 occurred because there was a A. drop in employment but a rise in real GDP. B. drop in the unemployment rate but a rise in real GDP. C. rise in employment but also a rise in unemployment. D. rise in employment but a rise in real GDP

A. drop in employment but a rise in real GDP.

Suppose government spending and lump sum taxes are both reduced by $100 billion. As a​ result, GDP will A. fall by $100 billion. B. increase by more than $100 billion. C. fall by more than $100 billion. D. increase by $100 billion.

A. fall by $100 billion.

In macroeconomics we study the interactions of three markets: A. goods-and-services market, labor​ market, and money market. B. stock​ market, bond​ market, and labor market. C. market for domestic​ goods, market for imported​ goods, and the stock market. D. agricultural​ market, market for manufactured​ goods, and market for services.

A. goods-and-services market, labor​ market, and money market.

In order for an economy to be​ successful, there must be some form of organization. Firms produce products that are marketed and sold. There must be people who desire to purchase and consume the products that are produced by the firms. This group of individuals that consumes the products that are produced in a market economy are known as households. Which of the following is true in a market​ economy? A. A household is best represented by a married couple with two cats and a dog. B. A household demands goods and services from the market and supplies factor inputs. C. A household is often the primary production unit in a market economy. D. All households except the very wealthy are constrained by limited incomes.

B. A household demands goods and services from the market and supplies factor inputs.

The rent for​ 2-bedroom apartments in Detroit has fallen from an average of​ $796 in September 2014 to​ $717 in March 2015. Demand for​ 2-bedroom apartments in Detroit was falling during this period as well. This is hard to explain because the law of demand says that lower prices should lead to higher demand. Do you agree or disagree with this​ statement? A. Agree. This is hard to explain because a fall in prices should result in a higher quantity demanded. B. Disagree. A leftward shift of the demand curve would result in a lower price and a lower quantity demanded. C. Agree. This is hard to explain because a rise in prices should result in a higher quantity demanded. D. Disagree. A rightward shift of the demand curve would result in a lower price and a lower quantity demanded.

B. Disagree. A leftward shift of the demand curve would result in a lower price and a lower quantity demanded.

Suppose that your grade point average and academic record are the most important thing to you. What is the opportunity cost of spending 2 hours studying for a biology​ exam? A. Your lost income from not working. B. Time spent studying for one of your other classes. C. Basic leisure time. D. Time spent bowling with friends.

B. Time spent studying for one of your other classes.

During​ 2002, real GDP in Japan rose about 1.3​ percent, but during the same time​ period, retail sales fell 1.8 percent in real terms. This was made possible A. because only inventories increased. B. because the sum total of real​ investment, government​ purchases, and net exports grew while​consumption, which is measured by retail​ sales, fell in real terms. C. because of​ inflation, which lowered consumption and retail​ sales, but increased the value of GDP. D. due to statistical error. Retail sales and GDP always move in the same direction.

B. because the sum total of real​ investment, government​ purchases, and net exports grew while​consumption, which is measured by retail​ sales, fell in real terms.

Consider the following​ statement: "Statistics tell us that ice cream sales increase during the summer months. It is also the case that reported burglaries increase during the same period. We can​ conclude, therefore, that increased ice cream sales cause an increase in​ burglaries." The conclusion of this​ statement: A. is normative analysis. B. falls victim to ​"post hoc, ergo propter​ hoc." C. commits the fallacy of composition. D. All of the above. E. None of the above.

B. falls victim to ​"post hoc, ergo propter​ hoc."

Which of the following best describes the relationship between aggregate expenditure and real GDP? A. If aggregate expenditure falls short of real​ GDP, inventories will decrease and real GDP and aggregate income will fall in future. B. If aggregate expenditure falls short of real​ GDP, inventories will accumulate and real GDP and aggregate income will increase in future. C. If aggregate expenditure falls short of real​ GDP, inventories will accumulate and real GDP and aggregate income will fall in future. D. If aggregate expenditure falls short of real​ GDP, inventories will decrease and real GDP and aggregate income will increase in future.

C. If aggregate expenditure falls short of real​ GDP, inventories will accumulate and real GDP and aggregate income will fall in future.

In an effort to​ "support" the price of some agricultural​ goods, the Department of Agriculture pays farmers a subsidy in cash for every acre that they leave unplanted. The Agriculture Department argues that the subsidy increases the​ "cost" of planting and that it will reduce supply and increase the price of competitively produced agricultural goods. Critics argue that because the subsidy is a payment to​farmers, it will reduce costs and lead to lower prices. Which argument is​ correct? A. The Department of​ Agriculture's argument is correct. The subsidy increases the​ "cost" of​planting, which in turn makes each acre more profitable for​ farmers, so they can plant fewer acres. B. The​ critics' argument is correct. The more money farmers​ receive, the easier it will be for them to reduce prices. In this​ case, the subsidy acts like increased revenue or serves to lower​ farmers' costs. C. The Department of​ Agriculture's argument is correct. The subsidy does increase the​ "cost" of​planting, but there is now an opportunity cost. By​ planting, the farmers must give up the subsidy. The subsidy will clearly lead to fewer acres of production and higher farm prices. D. The​ critics' argument is incorrect. The more money farmers​ receive, the greedier they will​become, so prices will rise. In this​ case, the subsidy acts like increased revenue or serves to lower​ farmers' costs.

C. The Department of​ Agriculture's argument is correct. The subsidy does increase the​ "cost" of​planting, but there is now an opportunity cost. By​ planting, the farmers must give up the subsidy. The subsidy will clearly lead to fewer acres of production and higher farm prices.

Using the concept of​ equity, argue for or against the legalization of​ recreational-use marijuana. A. Using marijuana could become addictive and lead to the abuse of harder​ drugs, leading to further drug abuse. B. There are people who receive benefits from the medical use of marijuana and should be allowed to access it even without medical consent. C. Not everyone believes that marijuana is harmful and would like to receive its benefits. D. All of the above.

D. All of the above.

The diagram to the right illustrates a demand curve. Economists have learned the most important factor in determining an​ individual's demand for a single product is the relationship between price and quantity demanded. The demand curve depicts the specific relationship between price and quantity demanded. This is known as the law of demand. How do economists define the law of​ demand? A. A positive relationship between price and quantity demanded. B. The amount of a product that a household would buy in a given time period if it could buy all it wanted at the current market price. C. A​ negative, or​ inverse, relationship between demand and price. D. A​ negative, or​ inverse, relationship between quantity demanded and price.

D. A​ negative, or​ inverse, relationship between quantity demanded and price.

Consider the following information on the levels of​ income, consumption and planned investment for a ​country: (차트) When income is $2,200​, A. Saving is −​$600 and unplanned investment​ (inventory change) is 400. B. Saving is $200 and unplanned investment​ (inventory change) is 400. C. Saving is​ $40 and unplanned investment​ (inventory change) is $200. D. Saving is $600 and unplanned investment​ (inventory change) is $200.

D. Saving is $600 and unplanned investment​ (inventory change) is $200.

Toyota, a​ Japan-based company manufactures a Camry automobile in​ Kentucky, USA and sells it in Japan. This transaction is included in A. GDP of both Japan and the U.S. with fifty percent in Japan's GDP under consumer durables and fifty percent under U.S. GDP under exports. B. U.S. GDP under imports. C. Japan's GDP under consumer durables. D. U.S. GDP under exports.

D. U.S. GDP under exports.

In​ 2012, Colorado and Washington became the first states to legalize marijuana for recreational​ use, and have since been joined by​ Oregon, Alaska, and​ Washington, D.C. In​ 2014, Colorado is reported to have received over​ $50 million in tax revenue from the sale of recreational​ marijuana, much of which was slated to be used for school construction. The potential for increased tax revenues and the benefits these revenues can provide has a number of other states contemplating the possible legalization of​ recreational-use marijuana. Recall that efficiency means producing what people want at the least cost. Which of the following responses uses the concept of efficiency to argue in favor of states allowing the sale of​ marijuana? A. Each state should allow the market to provide what people want. Since smoking is not mandatory only those who want to partake will do so. B. Tax revenues that arise from the purchase of recreational marijuana are paid voluntarily and will be used for the public good. C. Marijuana smokers should bear the burden of the social programs required due to drug abuse. D. All of the above. E. A and B only.

E. A and B only.

What do you think would happen to the flow of tax revenue to state governments if all 50 states legalized​marijuana? A. Tax revenue would fall in the states that were the first to legalize marijuana. B. Tax revenue would increase for those states that just legalized marijuana. C. There would be no change in the tax revenue flow. D. None of the above. E. A and B only.

E. A and B only.

What nonmonetary costs might be associated with legalizing marijuana​ use? A. Marijuana can be addictive and lead to the use of harder​ drugs, burdening the community with the cost of rehabilitation. B. The use of marijuana can increase​ productivity, thus impacting efficiency. C. The use of marijuana can reduce​ productivity, thus impacting the productivity of an individual and the community. D. All of the above. E. A and C only.

E. A and C only.

The transformation away from an agrarian society that began in​ mid-18th century England is known as the -Industrial Revolution. -revolutionary upheaval of 1750. -Great Leap Forward. -peasant uprising.

Industrial Revolution.

If you were to log onto www.census.gov and click on​ "Foreign Trade," then click on​ "Statistics," and finally on​ "State Export​ Data," you will find a list of the products produced in your​ state, which are exported around the world. You discover that Ohio exports more to Canada and Mexico than all other countries combined. Is this fact​ surprising? -Yes, Ohio's exports should be as diverse as that​ state's economy. -No, because of​ NAFTA, you would expect the export of goods to Canada and Mexico to be substantial. -No, Canada is so close to Ohio that transportation costs must be very low. -Yes, because NAFTA is widely regarded as a​ failure, you​ wouldn't expect the countries in the agreement to trade much with each other.

No, because of​ NAFTA, you would expect the export of goods to Canada and Mexico to be substantial.

In an open economy with flexible exchange​ rates, expansionary fiscal policy is likely to have less of a positive impact because A. expansionary fiscal policy lowers interest​ rates, which causes the dollar to​ appreciate, which decreases exports and increases imports. B. increased spending lowers money demand and thus interest​ rates, which causes the dollar to​depreciate, reducing exports and increasing imports. C. expansionary fiscal policy lowers interest​ rates, which causes the dollar to​ depreciate, which increases exports and decreases imports. D. increased spending raises money demand and thus interest​ rates, which causes the dollar to​appreciate, reducing exports and increasing imports.

increased spending raises money demand and thus interest​ rates, which causes the dollar to​appreciate, reducing exports and increasing imports.

The labor supply curve shows​ the: A. number of workers that the firms want to hire at each wage rate. B. number of workers that want to work at each wage rate. C. quantity of goods and services that the firms want to sell at each price. D. quantity of goods and services that the workers want to buy at each price.

number of workers that want to work at each wage rate.