Expansionary policies are policies designed to:
A. increase the level of real GDP.
B. reduce the level of real GDP.
C. decrease government spending.
D. reduce the federal deficit.
Answer: A
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Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate?
A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts downwards due to reduction of money supply. C) a fall in aggregate output D) depreciation in home country's currency E) a fall in the home interest rate
When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is full of customers c. shopping when the car lot has many cars left unsold d. shopping toward the beginning of the month
It is important to understand oligopoly markets because:
a. although few real world markets are oligopolies, their existence raises interesting theoretical questions. b. oligopolies typically generate more deadweight loss than monopolies. c. oligopolies can generate a whole range of possible outcomes between monopoly and perfect competition. d. one can predict the market outcome exactly just by knowing the number of firms in the market.
A price floor that sets the price of a good above market equilibrium will cause
a. a decrease in quantity demanded of the good. b. an increase in quantity supplied of the good. c. a surplus of the good. d. all of the above.