The economy of Appleland is experiencing a recession. In the figure given below, AD represents aggregate demand and AS represents aggregate supply in Appleland.
As a result of the austerity, policy
A. the AS curve shifts to AS'.
B. the AD curve shifts to AD'.
C. the AD curve shifts to AD''.
D. the AS curve shifts to AS''.
Answer: B
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The money demand curve will shift to the left if real GDP ________ or if the price level ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Assume that the resource market is purely competitive. If the price of the resource falls, other factors constant, then a firm that sells its product in a purely competitive market will:
A. Increase production by a larger amount than a firm with some monopoly power in its product market B. Increase production by a smaller amount than a firm with some monopoly power in its product market C. Decrease production by a larger amount than a firm with some monopoly power in its product market D. Decrease production by a smaller amount than a firm with some monopoly power in its product market
The potential positive feedback that government spending may have on investment is known as the _____. The potential negative effect that government spending may have on investment is known as the _____ effect
Fill in the blank(s) with correct word
The foreign exchange system that has the highest foreign exchange risk is
A. the Bretton Woods system. B. the Gold Standard C. the fixed exchange rate. D. the floating exchange rate.