Answer Happy

For this question, assume that the economy is initially
operating at the natural level of output. An increase in
unemployment benefits will cause
an increase in the real wage in the medium run.
ambiguous effects on the real wage in the medium run.
a reduction in the real wage in the medium run.
no change in the real wage in the medium run.
Which of the following situations generally exists when
deflation occurs?
the price level is decreasing.
inflation and unemployment are both increasing.
the natural rate of unemployment is zero.
inflation and unemployment are both decreasing.
the rate of inflation is falling from, for example, 10% to
3%.
Assume that policymakers are pursuing a fixed exchange rate
regime and that the economy is initially operating at the natural
level of output. Which of the following will occur as a result of a
revaluation?
the real exchange rate will be unchanged in the medium run.
the real exchange rate will be permanently lower in the medium
run.
the nominal exchange will initially fall in the short run and
then increase in the medium run.
the effects of this revaluation on the real exchange rate will
be ambiguous in the medium run.
the real exchange rate will be permanently higher in the medium
run.
For this question, assume that policymakers are pursuing a fixed
exchange rate regime and that output is initially greater than the
natural level of output. The economy will tend to move toward the
natural level of output when which of the following occur?
an increase in the price level.
a devaluation of the currency.
a reduction in the domestic interest rate.
an increase in the foreign price level.
none of the above.