The short-run aggregate supply curve shows a(n):
a. direct relationship between the expected price level and nominal GDP supplied.
b. inverse relationship between the actual price level and real GDP supplied
c. direct relationship between the actual price level and nominal GDP supplied.
d. direct relationship between the actual price level and real GDP supplied.
e. inverse relationship between the expected price level and real GDP supplied.
d
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Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, log(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, -100b represents the percentage change in quantity demanded given a one unit increase in price. By the Law of Demand, we should expect the value of b to be: A) positive. B) negative. C) positive or negative. D) We do not have enough information to answer this question.
Which of the following is true? If a central bank runs out of reserve assets, then:
a. Actually, it is impossible for a nation to run out of reserve assets because the central bank could always print more money to increase it. b. It cannot intervene in the foreign exchange market to raise the value of the nation's currency. c. It must fix its exchange rate to a strong currency because the central bank can no longer allow the currency to fluctuate. d. The central bank must borrow from its Treasury to increase the nation's reserve assets. e. It cannot intervene in the foreign exchange market to lower the value of the nation's currency.