In the short run with predetermined prices, when output is less than aggregate expenditure, firms will:
A. reduce production.
B. decrease aggregate expenditure.
C. increase aggregate expenditure.
D. increase production.
Answer: D
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A decision to join a free trade association, such as NAFTA, is an example of ________ policy.
A. normative B. structural C. fiscal D. monetary
The currency crisis of 1992 caused France and a number of other countries to choose between
A) a single currency for the EU and keeping their own currency. B) doing the right thing for their domestic economy and defending the exchange rate. C) lowering interest rates and reducing unemployment. D) competitive devaluations and falling unemployment. E) the Maastricht Treaty and the Single European Act.
Usury laws interfere with the automatic workings of the market mechanism.
Answer the following statement true (T) or false (F)
The inelastic demand for agricultural products means that relatively small increases in supply will result in a relatively:
A. Large decrease in farm prices and total revenue for farmers B. Small increase in farm prices and total revenue for farmers C. Small decrease in farm prices and a relatively large increase in total revenue for farmers D. Large increase in farm prices and a relatively small decrease in total revenue for farmers