The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve
A) may be above, below, or equal to full-employment output.
B) is always above full-employment output.
C) is always below full-employment output.
D) always corresponds to full-employment output.
A
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The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:
a. forward depreciation. b. backward depreciation. c. forward premium. d. backward premium.
In the specific factors model, a country's production function is ________ because of ________
A) a straight line; diminishing marginal returns B) a curved line; diminishing marginal returns C) a straight line; constant marginal returns D) a curved line; constant marginal returns E) a curved line; a limited supply of labor