An increase in the value of the U.S. dollar relative to the Japanese yen will
A. increase aggregate demand in the United States.
B. decrease aggregate supply in the United States.
C. increase aggregate demand in Japan.
D. increase aggregate supply in Japan.
Answer: C
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Which of the following decreases the official U-3 unemployment rate?
A) Workers leave the labor force. B) More women enter the labor force and seek jobs. C) Young people graduate from college and start to look for their first full-time job. D) None of the above because they all increase or do not change the unemployment rate.
Refer to Figure 11-11. In the short run, if the firm sells fewer than 5,000 picture frames per month
A) it should produce with the scale of operation associated with ATCc. B) it should produce with the scale of operation associated with ATCa. C) it should produce with the scale of operation associated with ATCb. D) it will experience constant returns to scale.