In the short-run, a supply shock will lead to
A) movement of prices and output in the same direction.
B) movement of prices and output in opposite directions.
C) a sustained inflation.
D) a movement in prices, but not output.
B
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The circular flow model shows that goods and services flow from
A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.
A market in which many firms sell identical products is
A) a monopoly. B) an oligopoly. C) only perfectly competition. D) only monopolistic competition. E) both perfect competition and monopolistic competition.
In a two country world, at least one country must lose from trade
Indicate whether the statement is true or false
If the central bank buys foreign assets,
A) the domestic monetary base will decline. B) domestic short-term interest rates will decline. C) the foreign-exchange value of the domestic currency will rise. D) its holdings of international reserves will rise.