Adjustments in ________ take the economy from the short-run equilibrium to the long-run equilibrium
A) imports and exports B) wages and prices
C) the multiplier D) interest rates
B
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A depreciation of the Mexican peso relative to the U.S. dollar would ________ Mexican firms that are exporting goods to the United States and would ________ Mexican firms that have borrowed in U.S. dollars
A) help; help B) help; hurt C) hurt; help D) hurt; hurt
Compared to a cartel, firms in a Cournot Oligopoly
A) make more joint profit. B) sell less output. C) make less joint profit. D) act independently.
Assume the multiplier is 5 and that the crowding-out effect is $30 billion. An increase in government purchases of $20 billion will shift the aggregate-demand curve to the
a. right by $130 billion. b. right by $70 billion. c. right by $50 billion. d. right by $10 billion.
U.S. monetary policy is best described as:
A. aimed at keeping inflation low and stable and growth high and stable. B. one of the most important functions of congress. C. attempting to keep inflation constant at zero percent. D. determining the denominations of a country's currency.