The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

Related Mcqs:

1. The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

   A. pass through
   B. absorption
   C. adjustment mechanism
   D. currency contract period

2. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

3. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

   A. is vertical
   B. is negatively sloped
   C. has a slope that is determined by how fast people adjust their price expectations
   D. is positively sloped

4. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

5. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches
   B. the Marshall Lerner approach
   C. the monetary approach
   D. the elasticities approach

6. Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?

   A. People will reduce their price expectations and the short run aggregate supply will shift right
   B. People will raise their price expectations and aggregate demand will shift left
   C. People will raise their price expectations and the short run aggregate supply will shift left
   D. People will reduce their price expectations and aggregate demand will shift right

7. Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?

   A. Price fall; output rises
   B. Price fall; output falls
   C. Price rise; output fall
   D. Price rise; output rise

8. Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?

   A. Price rise; output falls
   B. Price fall; output rises
   C. Price rise; output rises
   D. Price fall; output falls

9. In the short run, the supply of capital is ________ and in the long run will depend on _______?

   A. variable, technology
   B. fixed, expectations
   C. fixed, rental rate of capital
   D. variable, interest rates

10. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?

    A. SMC, LMC
    B. SMC above SAVC, LMC above LAC
    C. SMC below SAVC, LMC above LAC
    D. SMC below SAVC, LMC bellow LAC