People expect that the El Niño effect will cause drought in Australia in coming years. If most Australian firms expect their profits will fall during the next five years, Australia's ________ this year
A) aggregate demand will increase
B) long-run aggregate supply will increase
C) aggregate demand will decrease
D) short-run aggregate supply will increase
C
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The early goldsmiths issued money in the form of
a. coins made from gold in their safes. b. receipts for the acceptance of gold deposits. c. gold fragments left over from the production of jewelry. d. fully backed gold certificates.
The Clean Water State Revolving Fund (CWSRF) Program
a. was replaced by the federal grant program b. sets up lending programs at the state level to support POTW construction c. is no longer active d. received no support from the American Recovery and Reinvestment Act of 2009
In Econland exports equal 25 percent of total output, while imports equal 20 percent of total output. Econland has a:
A. budget surplus. B. trade deficit. C. budget deficit. D. trade surplus.
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. How could the owner of a house with a solid foundation credibly signal to potential buyers that the house has a solid foundation?
A. Lower the asking price to $196,000. B. Keep the house on the market for $200,000 because eventually buyers will catch on. C. Simply tell potential buyers that the foundation is solid. D. Offer a warranty to fix any foundation problems that develop in the next 12 months.