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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The consumer price index for services is classified as a:
A. Lagging indicator.
B. Leading indicator.
Coincident indicator.
The GDP deflator is calculated as 100 times the ratio of:
A. Nominal GDP to real GDP.
Base year prices to current year prices.
Current year nominal GDP to base year nominal GDP.
Monetary policy is most likely to fail to achieve its objectives when the economy is:
A. Growing rapidly.
B. Experiencing deflation.
C. Experiencing disinflation.
In the presence of tight monetary policy and loose fiscal policy, the most likely effect on interest rates and the private sector share in GDP are:
Interest rates Share of private sectorIn the presence of tight monetary policy and loose fiscal policy, the most likely effect on interest rates and the private sector share in GDP are:
Interest rates Share of private sector
A. lower lower
B. higher higher
C. higher lower