An increase in the price level in the aggregate expenditures model would ________.
A. increase aggregate expenditures and shift the AD curve to the right
B. decrease aggregate expenditures and shift the AD curve to the left
C. increase aggregate expenditures but would not shift the AD curve
D. decrease aggregate expenditures but would not shift the AD curve
Answer: D
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Suppose an oligopolistic firm raises the price of its output. Demand for the firm's output will be relatively price ________ if the other dominant firms in the market ________
A) elastic; do not raise price B) unit elastic; do not raise price C) inelastic; also raise price D) cannot be determined
The freely floating exchange rate system has been in effect since
A. 1933. B. 1943. C. 1953. D. 1973.
If income is rising faster in Japan than in the United States, there will be an increase in the demand for the yen and a decrease in the demand for the dollar.
Answer the following statement true (T) or false (F)
Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. The total dollar value damage to society is
a. 400 b. 450 c. 500 d. 550