If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise
a. True
b. False
Indicate whether the statement is true or false
True
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Discriminatory trade practices are allowed among sister WTO member countries, especially when it comes to
A) the use of child labor in agricultural and textile/apparel products. B) national security and special benefits given to other members of a free trade area. C) the protection of agriculture and textile/apparel from open trade. D) Both A and B are correct. E) Both B and C are correct.
Which of the following is not a policy to reduce stagflation?
A. Restricting immigration. B. Deregulation. C. Investing in human capital. D. Developing infrastructure.
In the Cournot model, firms take their rivals' reactions as given.
Answer the following statement true (T) or false (F)
A decrease in the federal funds rate
A) increases other short-term interest rates, decreases investment, and decreases aggregate demand. B) lowers the exchange rate, increases the supply of loanable funds, and increases aggregate demand. C) lowers other sort-term interest rate, raises the real interest rate, and increases aggregate demand. D) decreases the supply of loanable funds, raises the real interest rate, and decreases aggregate demand. E) decreases the demand for loanable funds, lowers the real interest rate, and decreases aggregate demand.