Refer to the graph shown. What will reduce the trade deficit?
A. The SAS curve shifts down.
B. The WAS curve shifts up.
C. The AD curve shifts to the left.
D. All the answers are correct.
Answer: D
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An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money
A) no change; an increase B) a decrease; a decrease C) an increase; an increase D) a decrease; an increase E) an increase; a decrease
At a perfectly competitive firm’s short-run equilibrium level of output,
A. P = MR = MC. B. P = MR, but MR does not equal MC. C. P = MC, but MR does not equal MC. D. MR = MC and P < MR.
A German who exchanges euros for dollars in a U.S. airport is
a. contributing to U.S. exports b. lending dollars to Germans c. participating in the foreign exchange market d. engaging in speculative activities e. engaging in illegal activities
A monopolist is
A. a firm with the largest annual sales in a country. B. a single supplier of a good for which there is no close substitute. C. a supplier of a good that everyone needs with the result that it makes large profits. D. a large firm that makes all the other firms in the industry do what it wants.