If autonomous imports increase, then the aggregate expenditure curve shifts ________ and equilibrium real GDP ________
A) upward; increases
B) downward; does not change
C) downward; increases
D) upward; decreases
E) downward; decreases
E
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The figure above shows the market for college education in the United States. If the government does not intervene in this market, the deadweight loss equals ________ per year
A) $28 billion B) $14 billion C) $280 billion D) $224 billion E) $7 billion
Refer to Figure 3-5. In a free market such as that depicted above, a shortage is eliminated by
A) a price decrease, decreasing the supply and increasing the demand. B) a price increase, increasing the quantity supplied and decreasing the quantity demanded. C) a price increase, increasing the supply and decreasing the demand. D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
An expansionary monetary policy, all else equal, will:
A) depreciate the domestic currency. B) appreciate the domestic currency. C) all of the above. D) none of the above.
A shortage in the bread market can cause the price of bread to rise
Indicate whether the statement is true or false