Which of the following would both raise the U.S. exchange rate?
a. capital flight from other countries to the U.S. occurs and the U.S. moves from budget surplus to budget deficit
b. capital flight from other countries to the U.S. occurs and the U.S. moves from budget deficit to budget surplus
c. capital flight from the U.S. to other countries occurs, the U.S. moves from budget surplus to budget deficit
d. capital flight from U.S. to other countries occurs, the U.S. moves from budget deficit to budget surplus
a
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Suppose that the current price level is 110, real GDP is $100 billion, and long-run aggregate supply is $95 billion. We can conclude that
A) the price level will fall and input prices will rise until real GDP pulls long-run aggregate supply up to $100 billion. B) aggregate demand will increase until both short-run and long-run aggregate supply equal $100 billion. C) the price level will fall until long-run aggregate supply shifts to $100 billion. D) input prices will rise until real GDP is $95 billion.
The most vocal political pressure for tariffs is generally made by
A) consumers lobbying for export tariffs. B) consumers lobbying for import tariffs. C) consumers lobbying for lower import tariffs. D) producers lobbying for export tariffs. E) producers lobbying for import tariffs.