When E decreases by 3%, we know that
A) a real appreciation will occur if P also falls by 3%.
B) a real depreciation will occur if P increases by 3%.
C) nominal appreciation.
D) nominal depreciation.
D
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If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be
a. True b. False Indicate whether the statement is true or false
Which of the following most accurately describes the aggregate supply curve?
a. It shows the price level associated with firms' unit costs and markups for any level of GDP. b. It is the sum of all individual firms' supply curves. c. It is determined by the federal government. d. It shows firms' unit costs for each level of GDP. e. It shows the equilibrium level of GDP corresponding to each price level.