If the market for bottled spring water is characterized by a very elastic supply curve and a very inelastic demand curve, an outward shift in the supply curve would be reflected primarily in the form of

a. higher prices.
b. higher output.
c. lower prices.
d. lower output.


c

Economics

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The "key ingredient" in ending a hyperinflation is to

A) allow the money supply to grow more rapidly. B) reduce the enormous budget deficit. C) require wage contracts to be indexed more frequently. D) devalue the nation's currency in the foreign exchange market.

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How do lags affect stabilization policy? Your answer should include three specific types of lags

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_________________: Want to increase activity in a given area

Fill in the blank(s) with the appropriate word(s).

Economics

A balance-of-payments surplus can be reduced with

A. Increased tariffs and quotas on foreign goods. B. Increased government spending. C. Increased taxes. D. Contractionary monetary policy.

Economics