Suppose that there is a balance of trade in both the United States and Canada. Then, the U.S. dollar appreciates against the Canadian dollar. What would the likely outcome be?
(A) A trade deficit in both countries.
(B) A trade surplus in the United States.
(C) A trade deficit in Canada.
(D) A trade surplus in Canada.
Ans: (D) A trade surplus in Canada.
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Graphically, a firm's total cost is equal to the area of the:
a. triangle formed under the demand curve. b. rectangle formed under the demand curve at a given price and quantity combination. c. rectangle formed under the average-total-cost curve at a given ATC and quantity combination. d. triangle formed by a line segment between the demand and average-total-cost curves. e. triangle formed by a line segment between the horizontal axis and the average-total-cost curves.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.