How to answer economics question?

Posted on 2014-12-13 07:39:00 in Economics by CHRISTY

1. If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of the yen is:

A. $.05.

B. $.50

C. $.005.

D. $5.



2. A key assumption in the description of recession in the extended AD-AS model is that:?

A. wages and prices are flexible downward.

B. real GDP is fixed in the short run.

C. the unemployment rate is fixed in the short run.

D.wages and prices are fixed in the long run.



3. Supply-side economists believe that with the U.S. system of taxation

A. a rise in taxes will decrease unemployment.

B. a rise in taxes will increase real GDP.

C. a cut in taxes will increase transfer payments.

D. a cut in taxes will increase incentives to save.



4. The long-run aggregate supply curve is upsloping because real wages eventually change by the same amount as changes in the price level. TRUE OR FALSE



5. Supply-side economists recommend higher marginal tax rates to increase aggregate supply. TRUE OR FALSE

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