Question 1

Which of the following will lead to a leftward shift in the U.S.SRAS curve?

Accepted Answer

A leftward shift in the U.S.SRAS curve indicates a decrease in aggregate supply. A depreciation of the dollar leads to a decrease in foreign input prices, which will increase the cost of production and decrease aggregate supply. Option A will lead to a rightward shift in the U.S.SRAS curve, and option B doesn't have a direct impact on the U.S.SRAS curve.

Question 2

Expansionary fiscal policy

Accepted Answer

In a closed economy, an expansionary fiscal policy, such as increased government spending or tax cuts, can increase aggregate demand and stimulate economic activity, leading to an increase in Real GDP. However, in an open economy, expansionary fiscal policy can result in an increase in imports, which may offset the increase in domestic spending, resulting in a smaller overall increase in Real GDP compared to a closed economy. Therefore, expansionary fiscal policy raises Real GDP more in a closed economy than in an open economy.

Question 3

An expansionary monetary policy causes interest rates to _____________________,and eventually United States net exports ____________ causing the AD curve to shift to the ___________________.

Accepted Answer

An expansionary monetary policy involves decreasing interest rates, which leads to increased spending and investment. As a result, the demand for goods and services increases, causing an increase in net exports. The combined effect of these changes shifts the aggregate demand curve to the right. Therefore, choice A is the correct answer as it represents the correct sequence of events.

Question 4

In a two-country world,the depreciation of the domestic currency shifts

Accepted Answer

The answer of In a two-country world,the depreciation of the...

Question 5

According to the KOF Swiss Economic Institute's globalization indices for the world,globalization

Accepted Answer

The answer of According to the KOF Swiss Economic Institute's...

Question 6

In a two-country world,the appreciation of the domestic currency shifts

Accepted Answer

An appreciation of the domestic currency makes domestic goods more expensive relative to foreign goods, which leads to a decrease in net exports. This decrease in net exports shifts the aggregate demand (AD) curve to the left. Additionally, an appreciation of the domestic currency lowers the cost of imported inputs for domestic firms, which increases their profitability and shifts the short-run aggregate supply (SRAS) curve to the right. Therefore, the correct answer is B, as the AD curve shifts leftward and the SRAS curve shifts rightward.

Question 7

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___________________.

Accepted Answer

When the real interest rates in the United States are higher relative to foreign real interest rates, it will lead to an appreciation of the dollar. An appreciation of the dollar will shift the U.S. AD curve to the left, decreasing Real GDP as exports become more expensive and imports become cheaper. In addition, it may shift the SRAS curve to the left as well, as domestic producers face increased competition from cheaper imports, causing a decrease in output and employment.

Question 8

In a two-country world,many economists argue that an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)

Accepted Answer

An increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy) would lead to an inflow of foreign investments, increasing the demand for the domestic currency and causing it to appreciate. This would, in turn, reduce exports and increase imports, leading to a decrease in net exports, aggregate demand, and Real GDP.

Question 9

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

Accepted Answer

The answer of Which of the following will lead to...

Question 10

Lower real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and a ______________ shift of the U.S.SRAS curve.

Accepted Answer

Lower real interest rates in the United States make the dollar less attractive to foreign investors, reducing demand for the currency, and leading to a depreciation of the dollar. A depreciation of the dollar causes an increase in input costs (e.g., imports become more expensive), leading to a leftward shift of the U.S. SRAS curve.

Question 11

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Accepted Answer

The answer of Contractionary fiscal policy _______________ Real GDP ______________...

Question 12

Expansionary monetary policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Accepted Answer

Expansionary monetary policy increases the money supply and lower interest rates. In an open economy, the effect is greater because the lower interest rates attract foreign investment and stimulate exports, leading to an increase in Real GDP.

Question 13

If the dollar depreciates,the U.S.AD curve shifts _______________,the U.S.SRAS curve shifts __________________,and the price level will _________________________.

Accepted Answer

The answer of If the dollar depreciates,the U.S.AD curve shifts...

Question 14

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)shifts

Accepted Answer

The answer of In a two-country world,an increase in the...

Question 15

Two of the variables used to construct the KOF Swiss Economic Institute's economic globalization index are _______________ as a percentage of GDP,and tariff rates (the ______________ the tariff rate,the _____________ degree of economic globalization).

Accepted Answer

The two variables used to construct the KOF Swiss Economic Institute's economic globalization index are trade as a percentage of GDP and tariff rates. Higher levels of trade and lower tariff rates indicate a higher degree of economic globalization. Therefore, option B is the correct choice. Options A, C, and D are incorrect as they do not accurately reflect the variables used or their relationship to economic globalization.

Question 16

Which of the following is a general rule of business etiquette in the given city?

Accepted Answer

The answer of Which of the following is a general...

Question 17

If the dollar appreciates,the U.S.AD curve shifts leftward by an amount greater than the U.S.SRAS curve shifts rightward ,then Real GDP will _____________________ and the price level will _____________________.

Accepted Answer

If the dollar appreciates, it means that the value of the US currency has increased relative to other currencies. As a result, US exports become more expensive and imports become cheaper. This leads to a decrease in aggregate demand (AD) since exports are a component of AD, and cheaper imports reduce the incentive for domestic production. Therefore, the AD curve will shift leftward.

The U.S.SRAS curve will shift rightward due to the decrease in input prices caused by cheaper imports. However, the leftward shift in AD will be greater than the rightward shift in U.S.SRAS. This means that the equilibrium output and price level will both decrease. Therefore, the correct answer is (A) decrease; decrease.

Question 18

Higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)_____________________ of the dollar,a ____________ shift of the U.S.AD curve and a _________________ shift of the U.S.SRAS curve.

Accepted Answer

The answer of Higher real interest rates in the United...

Question 19

If the dollar appreciates and the U.S.AD curve shifts _______________ by an amount less than the U.S.SRAS curve shifts __________________,then Real GDP will _________________________.

Accepted Answer

The answer of If the dollar appreciates and the U.S.AD...

Question 20

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

Accepted Answer

The answer of Assuming that the increase in the value...

Quiz 24: Globalization and International Impacts on the Economy

Which of the following will lead to a leftward shift in the U.S.SRAS curve?

Expansionary fiscal policy

An expansionary monetary policy causes interest rates to ___,and eventually United States net exports causing the AD curve to shift to the _.

In a two-country world,the depreciation of the domestic currency shifts

According to the KOF Swiss Economic Institute's globalization indices for the world,globalization

In a two-country world,the appreciation of the domestic currency shifts

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___.

In a two-country world,many economists argue that an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

Lower real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) __ of the dollar and a shift of the U.S.SRAS curve.

Contractionary fiscal policy _ Real GDP in an open economy than in a closed economy.

Expansionary monetary policy _ Real GDP in an open economy than in a closed economy.

If the dollar depreciates,the U.S.AD curve shifts _,the U.S.SRAS curve shifts ,and the price level will _____________.

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy) shifts

Two of the variables used to construct the KOF Swiss Economic Institute's economic globalization index are _ as a percentage of GDP,and tariff rates (the the tariff rate,the _ degree of economic globalization) .

Which of the following is a general rule of business etiquette in the given city?

If the dollar appreciates,the U.S.AD curve shifts leftward by an amount greater than the U.S.SRAS curve shifts rightward ,then Real GDP will _ and the price level will _.

Higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) _____ of the dollar,a shift of the U.S.AD curve and a _ shift of the U.S.SRAS curve.

If the dollar appreciates and the U.S.AD curve shifts _ by an amount less than the U.S.SRAS curve shifts ,then Real GDP will _____________.

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

Quiz 24: Globalization and International Impacts on the Economy

Which of the following will lead to a leftward shift in the U.S.SRAS curve?

Expansionary fiscal policy

An expansionary monetary policy causes interest rates to _____________________,and eventually United States net exports ____________ causing the AD curve to shift to the ___________________.

In a two-country world,the depreciation of the domestic currency shifts

According to the KOF Swiss Economic Institute's globalization indices for the world,globalization

In a two-country world,the appreciation of the domestic currency shifts

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) ________________ of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___________________.

In a two-country world,many economists argue that an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

Lower real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) ________________ of the dollar and a ______________ shift of the U.S.SRAS curve.

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Expansionary monetary policy _______________ Real GDP ______________ in an open economy than in a closed economy.

If the dollar depreciates,the U.S.AD curve shifts _______________,the U.S.SRAS curve shifts __________________,and the price level will _________________________.

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy) shifts

Two of the variables used to construct the KOF Swiss Economic Institute's economic globalization index are _______________ as a percentage of GDP,and tariff rates (the ______________ the tariff rate,the _____________ degree of economic globalization) .

Which of the following is a general rule of business etiquette in the given city?

If the dollar appreciates,the U.S.AD curve shifts leftward by an amount greater than the U.S.SRAS curve shifts rightward ,then Real GDP will _____________________ and the price level will _____________________.

Higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) _____________________ of the dollar,a ____________ shift of the U.S.AD curve and a _________________ shift of the U.S.SRAS curve.

If the dollar appreciates and the U.S.AD curve shifts _______________ by an amount less than the U.S.SRAS curve shifts __________________,then Real GDP will _________________________.

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

An expansionary monetary policy causes interest rates to ___,and eventually United States net exports causing the AD curve to shift to the _.

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___.

Lower real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) __ of the dollar and a shift of the U.S.SRAS curve.

Contractionary fiscal policy _ Real GDP in an open economy than in a closed economy.

Expansionary monetary policy _ Real GDP in an open economy than in a closed economy.

If the dollar depreciates,the U.S.AD curve shifts _,the U.S.SRAS curve shifts ,and the price level will _____________.

Two of the variables used to construct the KOF Swiss Economic Institute's economic globalization index are _ as a percentage of GDP,and tariff rates (the the tariff rate,the _ degree of economic globalization) .

If the dollar appreciates,the U.S.AD curve shifts leftward by an amount greater than the U.S.SRAS curve shifts rightward ,then Real GDP will _ and the price level will _.

Higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) _____ of the dollar,a shift of the U.S.AD curve and a _ shift of the U.S.SRAS curve.

If the dollar appreciates and the U.S.AD curve shifts _ by an amount less than the U.S.SRAS curve shifts ,then Real GDP will _____________.