Use the following graph to answer the next question.
If aggregate supply shifts from AS1 to AS2, then the price level will ________.
A. decrease and real domestic output will increase
B. decrease and real domestic output will decrease
C. increase and real domestic output will increase
D. increase and real domestic output will decrease
Answer: D
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The opportunity cost of being unemployed tends to be the highest in which of the following countries?
A) Canada B) France C) the United Kingdom D) the United States
The informativeness principle tells us that:
A. one must only use information that is necessary to develop compensation contracts, as long as the cost of obtaining the information is reasonable. B. one must use as much information as possible to develop compensation contracts, even if the cost of obtaining the information is unreasonable. C. information is overrated because employees can always lie about their performance, and detecting is costly and counter-productive. D. you must use as much information as possible to develop compensation contracts, as long as the cost of obtaining the information is reasonable.
What questions should an employee ask before accepting options as part of or instead of a salary?
What will be an ideal response?
An open market purchase by the Fed causes the value of the dollar to:
A. rise, increasing net exports. B. rise, reducing net exports. C. fall, increasing net exports. D. fall, reducing net exports.