Figure 18.3Refer to Figure 18.3. The opportunity cost of producing pogo sticks in Livonia is:

Where would a country such as Japan get U.S. dollars in order to engage in managed float?

a. It would print them. b. It would use its reserve of dollars. c. It would sell yen on the open market in exchange for U.S. dollars. d. Since Japan's currency is the yen, it would not be able to obtain U.S. dollars. e. It would borrow U.S. dollars form the U.S.

If policymakers increase aggregate demand, then in the short run the price level

a. falls and unemployment rises. b. and unemployment fall. c. and unemployment rise. d. rises and unemployment falls.