Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as

Theoretically, one can distinguish a demand-pull inflation from a cost-push inflation by comparing

A) how fast prices rise relative to wages. B) the unemployment rate with its natural rate level. C) when prices rise relative to wages. D) government debt to real GDP.

With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would

have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater