Everything else held constant, a shift in tastes in the U.S. toward Mexican goods will ________ net exports in the U.S. and cause the quantity of aggregate output demanded to ________ in Mexico
A) decrease; rise
B) decrease; fall
C) increase; rise
D) increase; fall
A
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Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. How many active firms are in the market?
A. 50 B. 5 C. 10 D. 20
If a country's currency depreciates, which of the following will most likely happen?
a. Net exports will fall and aggregate demand will increase. b. Net exports will rise and aggregate demand will increase. c. Net exports will fall and aggregate demand will decrease. d. Net exports will rise and aggregate demand will decrease.
A significant lag for monetary policy is the time it takes to for a change in the money supply to change the economy. A significant lag for fiscal policy is the time it takes to pass legislation authorizing it
a. True b. False Indicate whether the statement is true or false
When firm 1 acts as a Stackelberg leader:
A. Firm 2 will earn more than if they compete in a Cournot fashion. B. Firm 1's profit is less than its profit if they compete in a Cournot fashion. C. Firm 2 produces the monopoly output. D. None of the answers is correct.