Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use a(n)
a. pie chart. b. bar graph. c. time-series graph d. coordinate system.
Why are people willing to pay more for a diamond than for a bottle of water?
What will be an ideal response?
Which of the following is a reason for using independently pooled cross sections?
A. To obtain data on different cross sectional units B. To increase the sample size C. To select a sample based on the dependent variable D. To select a sample based on the independent variable
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
Which of the following statements is correct?
A. Firm A does not have a dominated strategy. B. "Invest" is a dominated strategy for Firm A. C. "Don't invest" is a dominated strategy for Firm A. D. It cannot be determined whether Firm A has a dominated strategy.