A short-lived increase in oil prices caused by destruction of oil-producing and oil-refining facilities by a large hurricane will
A. shift the SRAS curve to the right.
B. shift the SRAS curve to the left.
C. shift the AD curve to the right.
D. shift the LRAS curve to the right.
Answer: B
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From 1900 to 1960, Latin America's real GDP grew
A) slower than Europe, Asia, and the U.S. B) as fast or faster than Europe, Asia, and the U.S. C) faster than Europe and the U.S. but slower than Asia. D) faster than Asia, but slower than Europe and the U.S.
According to purchasing power parity, which of the following is FALSE about an overvalued dollar compared to the Japanese yen?
A) U.S. merchants would be motivated to import more Japanese goods. B) Japanese merchants would tend to export more to the United States. C) Prices in the United States would tend to fall. D) Over the long term, the exchange rate would fall. E) Prices in Japan would tend to rise.