Which of the following will NOT cause a leftward shift in the Long-Run Aggregate Supply curve?
A) a reduction in the amount of capital B) a reduction in government spending
C) a reduction in the amount of oil D) a net outflow of human capital
B
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"The recent availability of satellite television has reduced the price of cable television subscriptions." Based on this statement, what may be concluded about price, cross-price, or income elasticity of demand?
What will be an ideal response?
All of the following statements are true about the real exchange rate, = , EXCEPT
A) a greater change in P (domestic price) compared to a change in P (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged. B) a pegged exchange rate system requires tight control of the money supply. C) there is a one-to-one correspondence between the real and nominal exchange rates. D) an expansionary monetary policy raises the real exchange rate.