When Fed policy is being used to offset a contractionary gap, which of the following variables decreases as a result?
a. Aggregate demand

b. Investment.
c. Net Exports.
d. None of the above variables decreases as a result of Fed policy to offset a contractionary gap..


d

Economics

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What will be an ideal response?

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The Gulf Cartel and Sinaloa Cartel are the two major cartels in illegal drug trade in Mexico. Although, each of these cartels are better off sharing the market, they have an incentive to try to take the entire market. In which of the following ways is cheating among these cartel members dealt with in this region?

a. Through government taxation policy b. Through legally enforceable contracts c. Through restrictions on the supply of inputs used by the firms d. Through output quota and price ceiling e. Through violence and drug wars

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In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

A. higher prices. B. lower prices. C. lower output. D. None of these is true.

Economics