If Asian economies suffer a serious economic slump, what will happen to U.S. net exports and Aggregate Demand (AD)?
What will be an ideal response?
Net exports will decrease an AD will shift leftward.
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When the price level_______, the inflation rate ______
A. rises rapidly; increases B. rises rapidly; is high C. falls; is zero D. rises slowly; falls
When the domestic currency strengthens under a fixed exchange-rate system, this is called
A) a depreciation. B) an appreciation. C) a devaluation. D) a revaluation.
If a monopoly can advertise and as a result the demand curve will become more inelastic, the monopoly
A) should always engage in the advertising. B) should engage in the advertising until the demand curve becomes more elastic. C) will earn higher gross profit if it advertises. D) None of the above.
Monopolistic competition is common in
A. retail selling. B. farming. C. basic manufacturing. D. electric power generation.