When investment demand shifts to the left, ________.
A. expansionary monetary policy will shift the aggregate supply to the right by less than before.
B. expansionary monetary policy will shift aggregate demand to the right by less than before.
C. expansionary monetary policy will shift aggregate demand to the left by less than before.
D. expansionary monetary policy will shift the aggregate supply to the left by less than before.
Answer: B
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When one strategy is always the best for a player to choose, regardless of what other players do, it is called:
A. a dominant strategy. B. a Nash equilibrium. C. collusion. D. the prisoner's dilemma.
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls, and aggregate supply rises. c. Aggregate demand and aggregate supply rise. d. Neither aggregate demand nor aggregate supply change. e. Aggregate demand rises, and aggregate supply falls.
In theory, in the long run, monopolistically competitive firms earn zero profits.However, in reality there are some ways by which a firm can avoid losing profits. Which of the following is one such way?
A) gradually increase the mark-up on the goods produced B) lower the price of its products to expand its market share C) identify new markets and develop products precisely for those markets D) find a market niche and keep it as narrow as possible so as to prevent other producers from entering this market segment
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.