A fall in the real exchange rate (appreciation) will decrease the trade balance in the short run and cause a(n) ___ of the total demand curve.

The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?

A) 1,500/(1.03)8 B) 8.03/1,500 C) 1,500 × 1.3 × 8 D) 1,500/(1.3)8

According to the text, economists consider full employment to occur when

A) everyone who wants a job has a job. B) frictional unemployment equals zero. C) the sum of frictional unemployment and structural unemployment equals zero. D) the unemployment rate consists of only frictional and structural unemployment.