X Question 3 0 points Which of the following could lead to an increase in long-run aggregate supply? X A. Deregulation of the railroad industry causes shipping costs to fall. B. To handle an increase in the number of court trials, the government spends more funds on court construction and on hiring judges and other court personnel. C. Falling exchange rates cause exports to expand and imports to decline. D. More people nish the school and enter the labor force. E. Weakening expectations of the future cause consumers to cut back on their spending. X Incorrect X Question 4 0 points According to the law of one price, if a particular bottle of soda costs $2 in the United States and 10 francs in France, and if transportation costs are zero, the exchange rate should be: A. 5 francs per dollar. X B. 5 dollars per franc. C. 12 francs per dollar. D. 8 francs per dollar. E. 8 dollars per franc. X Incorrect X Question 7 0 points Suppose consumption expenditures in Japan can be modeled by the equation: C = 50 trillion+ 0.8- Yd, where Ydis aggregate disposable income, and is the symbol for a yen. Initially, aggregate personal income is 500 trillion. and taxes are 100 trillion. If the Japanese government cuts taxes by 50 trillion, what will happen to real GDP? A. It rises by 370 trillion. B. It rises by 200 trillion. C. It falls by 200 trillion. D. It falls by 40 trillion. X E. It rises by 40 trillion. X Incorrect X Question 8 0 points Examine the currency market for British pounds and US dollars. Initially, the market is at equilibrium. Suppose the Bank of England, Britain's central bank, sells bonds on the British bond market, driving up their interest rates. Which graph shows how these changes alter the pound-dollar currency market? Quantity ofDounds Quantity of Pounds Quantity _En_..__l_ X Question 10 0 points Suppose the government requires businesses to provide dental, mental health, and various other health benets to their workers. As a result of this policyI the price level greatly increases. Which of these diagrams best shows this scenario? Price Level O A. AS AS\" Price Level r48 Price Level X C. AS" A3 X Question 14 0 points Suppose an economy is operating on its short-run Phillips curve, and the unemployment rate is below the natural rate of unemployment. Which of the following statements is correct? A. The economy is operating at a point on the short-run Phillips curve above the long-run Phillips curve. B. The economy is operating at a point on the long-run Phillips curve. XO C. The economy is operating at a point on the short-run Phillips curve below the long-run Phillips curve. O D. The economy is operating at a point on the short-run Phillips curve to the left of the long-run Phillips curve. E. The economy is operating at a point on the short-run Phillips curve to the right of the long-run Phillips curve.X Question 'li 0 points A Interest Rate Mon 33,: Supply Suppose that this graph describes the demand and supply for money in the United States during the Great Depression. What problem would the Federal Reserve have in trying to pull the economy out of its recession? 0 A. The Fed doesn't have enough government bonds to sell. O B. Nothing shown in the diagram would prevent the Fed from ending the Great Depression. 0 C. The Fed can't push down interest rates by a large degree. 0 D. Any action by the Fed would increase the demand for money and hurt the economy. X Question 15 0 points Suppose the German government has a debt of 100 billion euros. It takes in 4 billion euros of tax revenue, and spends 3 billion euros on goods and services and 6 billion euros on transfer payments. The following year, Germany's debt will be: X G) A. 95 billion euros. O B. 105 billion euros. O C. 113 billion euros. O D. 99 billion euros. O E. 5billion euros. X Question 17 0 points Suppose investment is $30 billion, exports are $20 billion, imports are $50 billion, government spending is $80 billion, and taxes are $60 billion. How much money is the household sector saving? O A. $80 billion x@ B. $60 billion 0 0. -$10 billion 0 D. $20 billion 0 E. $10bi||ion