A $2,000 decrease in investment will shift the aggregate expenditures curve down by:
A. exactly $2,000 and will decrease the equilibrium level of real GDP by exactly $2,000.
B. exactly $2,000 and will decrease the equilibrium level of real GDP by less than $2,000.
C. exactly $2,000 and will decrease the equilibrium level of real GDP by more than $2,000.
D. less than $2,000 and will decrease the equilibrium level of real GDP by less than $2,000.
Answer: C
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Official reserve assets include all of the following EXCEPT
A) foreign currencies. B) gold. C) special drawing rights. D) gifts to foreign countries.
A firm's marginal cost curve
a. is always U-shaped. b. always has a positive slope. c. is always below its average cost curve. d. always intersects its average cost curve at its minimum point.
At a price of $20 per unit, 140 units of good are demanded and 100 units are supplied. When the price is raised to $30 per unit, 100 units are demanded and 140 units are supplied. The price elasticity of supply in this range is:
A. 0.417. B. 1.20. C. 0.835. D. 1.0.
In the market for euros, the supply of euros (€) is
A) downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans. B) downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans. C) upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans. D) upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans.