An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) falls; does not change
D
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What is the marginal propensity to consume (MPC) and why is it important in predicting consumer behavior?
What will be an ideal response?
Trade surplus is the excess of exports over ________
A) capital outflows B) factor payments C) transfers D) imports
A cottage industry is one that
a. produces rural housing b. takes advantage of the division of labor c. uses highly specialized resources in a complex production process d. produces cottage cheese e. carries out production in workers' homes
An American firm that buys foreign exchange because its managers expect the dollar to depreciate is
A) increasing the supply of foreign exchange. B) decreasing the demand for foreign exchange. C) speculating. D) hedging.