Suppose the dollar depreciates in the foreign exchange markets. What is the impact on U.S. Real GDP?
A) It must rise because dollar depreciation shifts the U.S. AD curve rightward.
B) It must fall because dollar depreciation shifts the U.S. SRAS curve leftward.
C) It remains constant since dollar depreciation does not shift either the U.S. AD curve or the U.S. SRAS curve.
D) It may rise, fall, or remain constant depending upon whether the U.S. AD curve shifts rightward by more, less, or an amount equal to the leftward shift of the U.S. SRAS curve.
D
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Based on the production function in the above figure, which of the following is an attainable combination of labor and real GDP?
i. 300 billion hours of labor and real GDP of $20 trillion ii. 300 billion hours of labor and real GDP of $8 trillion iii. 100 billion hours of labor and real GDP of $12 trillion A) i only B) ii only C) iii only D) ii and iii E) i and ii
If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
A) demand for the product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of its product will be lower in the future than it is today. D) price of inputs will be lower in the future than they are today.