Increases in the Quality of Inputs That Do Not Affect

question 10

True/False

Increases in the quality of inputs that do not affect the quantity of those inputs increase long-run aggregate supply but not short-run aggregate supply.

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Definitions:

Country A's Currency

The legal tender issued by Country A's central bank or monetary authority, used as a medium of exchange within Country A.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date.

Direct Quote

A quotation in the foreign exchange market that expresses the amount of foreign currency required to buy or sell one unit of the domestic currency.

Direct Quote

A report of the exact words used by a speaker or writer, typically enclosed in quotation marks.