As of 2009, China's economy had recovered from the global recession that began in 2008
Use aggregate demand and aggregate supply analysis to explain why, and to explain the likely consequences for China of an increase in the growth rate of the global economy.
Policy in China reversed the decline in aggregate demand, substituting fiscal and monetary stimulus for the reduced demand for China's exports. The result was a rapid recovery of output and avoidance of downward shifts of the short-run aggregate supply curve that would have meant declining inflation. With output at or near potential in China, the rise in exports that will accompany faster growth of the global economy will cause a positive output gap and accelerating inflation, unless policy makers in China can again intervene with policies to counteract the positive output gap.
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Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right. B. shift to the left. C. become less elastic. D. remain the same since entering firms serve other customers in the market.
Use the information in the following table to answer the next question.(1) Interest Rate(2) Investment (billions of dollars)(3) Investment (billions of dollars)4%$100$8059070680607705086040In the table, investment is in billions. Suppose the Fed reduces the interest rate from 6% to 5% at a time when the investment demand declines from that shown by column (2) to that shown by column (3). As a result of these two occurrences, investment will ________.
A. increase by $20 billion B. increase by $10 billion C. decrease by $20 billion D. decrease by $10 billion
Which of the following statements is TRUE?
A) A perfectly competitive market produces more output and charges a lower price than a single-price monopoly. B) A perfectly competitive market produces more output and charges the same price as a single-price monopoly. C) A perfectly competitive market produces less output and charges a lower price than a single-price monopoly. D) A perfectly competitive market produces less output and charges the same price as a single-price monopoly.
What types of things are sold in input or factor markets? Who are the buyers and sellers in these markets?
What will be an ideal response?