For an economy that is initially at full-employment real GDP, an increase in aggregate demand will most likely have what effects on the price level and real GDP in the short run？
A. Both will increase in the short run.
B. Neither will increase in the short run.
C. Only one will increase in the short run.
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When GDP is calculated by the sum-of-value-added method, what is the value of a manufactured product in GDP？
A. The sum of the products value at each stage of production and distribution.
B. The sum of the increases in the products value at each stage of production and distribution.
C. The products retail price less the value added at each stage of production and distribution.
The spot rate on the New Zealand dollar （NZD） is NZD/USD 1.4286, and the 180-day forward rate is NZD/USD 1.3889. This difference means:
A. Interest rates are lower in the United States than in New Zealand.
B. Interest rates are higher in the United States than in New Zealand.
C. The NZD is expected to depreciate,and the USD is expected to appreciate.
A central bank conducts monetary policy primarily by altering the:
A. Policy rate.
B. Inflation rate.
C. long-term interest rate.
A stronger domestic currency relative to foreign currencies is most likely to result in a:
A. Shift in the aggregate supply curve toward lower supply.
B. Shift in the aggregate demand curve toward lower demand.
C. Movement along the aggregate demand curve towards higher prices.
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