A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________

Suppose policy makers want to increase Y and increase NX. Which of the following policies would most likely achieve this?

A) an increase in government spending B) a real depreciation C) a reduction in taxes and an increase in the real exchange rate D) an increase in the real exchange rate

Kate is a florist. Kate can arrange 20 bouquets per day. She is considering hiring her husband William to work for her. William can arrange 18 bouquets per day. What would be the total daily output of Kate's firm if she hired her husband?

a. 18 bouquets b. 19 bouquets c. 20 bouquets d. 38 bouquets