What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of output?
A. Net exports fall and contribute to demand-pull inflation
B. Net exports rise and contribute to demand-pull inflation
C. Net exports fall, but equilibrium GDP rises
D. Net exports rise, but equilibrium GDP falls
B. Net exports rise and contribute to demand-pull inflation
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If producing a good or a service creates pollution, then
A) an unregulated competitive market produces an efficient output. B) the industry's supply curve includes the extra cost of pollution. C) at the unregulated, competitive market equilibrium quantity, marginal social cost is greater than the equilibrium price. D) at the unregulated, competitive market equilibrium quantity, marginal social benefit and marginal social cost are equal. E) at the unregulated, competitive market equilibrium quantity, marginal social benefit is less than the equilibrium price.
Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?
A) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. B) The aggregate demand curve would have shifted to the right. C) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. D) The aggregate demand curve would have shifted to the left.