Generally, expenses on a sport utility vehicle are a large part of a consumer's budget, so the demand for sport utility vehicles is more likely to be

On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?

If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5 B) 14.5 C) 8.5 D) 2.5 E) none of the above

Foreign exchange market intervention is most effective when:

a. each country's political leaders agree to cooperate fully with the process. b. leading economists in each country believe that intervention is needed. c. permanent differences between the free market exchange rate and the fixed exchange rate are expected. d. temporary differences between the free market exchange rate and the fixed exchange rate are expected. e. all the countries restrict the international movement of goods and services.