In the Mundell-Fleming Model, If the Economy Is Operating at or Below

question 14

Multiple Choice

In the Mundell-Fleming model, if the economy is operating at or below the natural level in the short run, then in the long run the price level will fall, the exchange rate will ______, and net exports will ______ to restore the economy to its natural rate.

• A) appreciate; increase
• B) appreciate; decrease
• C) depreciate; increase
• D) depreciate; decrease

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Definitions:

Team

A group of individuals working together towards a common goal, often characterized by collaboration, communication, and mutual support.

Taylorism

Also known as scientific management, it's an approach to industrial organization and efficiency developed by Frederick W. Taylor, emphasizing time studies, work standardization, and task specialization.

Scientific Management

Scientific Management is a theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity, by systematic study.

Systematic Management

An approach to management focusing on procedures and techniques for increasing organizational efficiency and effectiveness.