If consumers become less confident and begin to borrow and spend less, what will happen in the dynamic AD/AS model?
A. The short-run aggregate supply curve will shift downward.
B. The long-run aggregate supply curve will shift to the left.
C. The aggregate demand curve will shift to the left.
D. The aggregate demand curve will shift to the right.
Ans: C. The aggregate demand curve will shift to the left.
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As the exchange rate ________, the quantity supplied of U.S. dollars ________
A) falls; increases B) rises; increases C) falls; remains the same D) rises; remains the same E) rises; decreases
Jake just bought a new hockey stick. When he was leaving the shop, he thought that he such a great deal and would have paid $50 more dollars for the stick. Jake received
A) producer surplus. B) equilibrium. C) marginal cost. D) total surplus. E) consumer surplus.
Suppose a monopolistically competitive firm's output where marginal revenue equals marginal cost is 66 units and the price corresponding to this quantity is $18. If the average total cost at this output is $16.55, then its total profit is
A) $1,188. B) $1,092.30. C) $95.70. D) $1.45.
Most analysts in the United States and the international financial community initially perceived the debt crisis as a temporary, short-run liquidity problem so they advised increasing capital flows to Latin America
Indicate whether the statement is true or false