Which of the following defines a hard peg?
A) An exchange rate determined by the market
B) An exchange rate that fluctuates within a set band
C) An exchange rate that is not allowed to vary
D) An exchange rate that is backed by gold
C
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Richard loses his job at the railroad due to a downturn in general business conditions. He is experiencing
a. structural unemployment. b. cyclical unemployment. c. seasonal unemployment. d. frictional unemployment.
Which one of the following statements is TRUE?
A. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that there is no correlation between the level of real GDP and the employment level. B. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that domestic workers are harmed by imports. C. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand will increase the price level, but will leave real GDP unaffected in the short term. D. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand can boost output in the short term.