When future labor income falls in a large open economy, it causes the current account to ________ and investment to ________

Of the following, when would the U.S. exchange rate rise the most?

A) when the supply of and demand for U.S. dollars increase B) when the supply of U.S. dollars increases and the demand for them decreases C) when the supply of U.S. dollars decreases and the demand for them increases D) when the supply of and demand for U.S. dollars decrease

The long-run adjustment to a negative supply shock results in

A) the price level rising. B) the short-run aggregate supply curve shifting to the right. C) workers being willing to accept higher wages. D) unemployment rising.