Suppose the U

question 6

Multiple Choice

Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run,everything else held constant. (Assume the appreciation causes no effects in the supply side of the economy. )

• A)an increase;an increase
• B)a decrease;a decrease
• C)no change;an increase
• D)no change;a decrease

---

Definitions:

Conflict Theory

A sociological perspective that focuses on the societal tensions, power dynamics, and inequalities that stem from competing interests, resources, and power.

Functionalist Theory

A sociological perspective emphasizing that all parts of society are interconnected, functioning together to maintain stability and social order.

Power/Knowledge Dynamic

The ways in which power and knowledge interact with each other, influencing how knowledge is created, disseminated, and employed to maintain or challenge power structures.

Foucault

A French philosopher and social theorist known for his analysis of power and discourse and for influencing a broad spectrum of social sciences.