Aggregate-demand curve shifts to the left if the money supply decreases.
a. true
b. false
Ans: a. true
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If the Federal Reserve buys $3 billion worth of Japanese yen and sells $5 billion of euros, how does this affect the balance of payments?
A) Falls by $2 billion B) Rises by $2 billion C) Rises by $3 billion D) Falls by $5 billion
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. employee's wages. B. the rope-cutting machine. C. the cost of rope. D. All of these expenses would be included in total cost.
Refer to the figure below. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will: 
A. not change; only the quantity supplied will change. B. shift to S(A). C. shift to S(B). D. not change because a change in the price of plastic will not affect the demand for action figures.
An industry with a ________ long-run supply curve is called an increasing-cost industry.
A. positive sloping B. horizontal C. backward bending D. negative sloping