Homework Clinic
Social Science Clinic => Economics => Macroeconomics => Topic started by: Tirant22 on Jun 30, 2018
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Unemployment that results from technological changes that renders some people's skills obsolete is called:
a. frictional unemployment.
b. cyclical unemployment.
c. structural unemployment.
d. seasonal unemployment.
Question 2
Explain how an increase in the American demand for Chinese goods leads to a change in the Chinese yuan relative to the U.S. dollar.
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Answer to Question 1
c
Answer to Question 2
Americans who wish to buy more Chinese goods will need more Chinese yuan. This increase in demand for yuan increases the price of yuan (relative to the dollar) on the foreign exchange market. The yuan has, therefore, appreciated relative to the dollar, and the dollar has depreciated relative to the yuan. A yuan will buy more dollars than before, and a dollar will buy fewer yuan.