The deepening recession in late 2008 sharply reduced consumer confidence, causing
A. aggregate demand to expand markedly.
B. aggregate demand to contract markedly.
C. aggregate supply to contract markedly.
D. aggregate supply to expand markedly.
Answer: B
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Gary has to decide between attending a two-day art workshop and a four-day art workshop. If he evaluates only the change in net benefit when he switches between the two options, he is using the technique of:
A) ordinal analysis. B) comparative statics. C) optimization in levels. D) optimization in differences.
An individual firm in perfect competition can exercise a significant control over the market price of the good
a. True b. False Indicate whether the statement is true or false
Yesterday the exchange rate was €1 = $1.30, and today it is €1 = $1.35. In this case the dollar has appreciated.
Answer the following statement true (T) or false (F)
Draw a graph showing a short-run average variable cost curve, a short-run average total cost curve, and a short-run marginal cost curve. Briefly explain the shape of each curve and how they relate to each other.
What will be an ideal response?