Based on the table above, equilibrium real GDP is
A) 6 trillion. B) 7 trillion. C) 9 trillion. D) 8 trillion. E) 10 trillion.
Question 2
When the exchange rate between the U.S. dollar and the euro changes from 1.30 euros per dollar to 1.00 euro per dollar the dollar has ________ and European goods have become ________ to people in the United States so that quantity of U.S.
dollars supplied ________.
A) appreciated; more expensive; decreases
B) depreciated; cheaper; increases
C) depreciated; more expensive; decreases
D) depreciated; cheaper; decreases
E) appreciated; cheaper; increases
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