A decrease in input prices will shift
A. aggregate supply to the left.
B. aggregate supply to the right.
C. aggregate demand to the left.
D. aggregate demand to the right.
Answer: B
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Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________
A) the value of net exports is zero B) the diagram represents a closed economy C) the world real interest rate is indicated by A D) the difference between values F and E measures the net capital inflow E) none of the above
During World War II, the distribution of income shifted. Who did this shift favor?
(a) Labor (b) The idle and wealthy class (c) The government (d) Foreign-born individuals
The graph above shows the average and marginal cost curves for the Banner Textile Company. The company produces corduroy fabric, which it sells in a perfectly competitive market. The current market equilibrium price for corduroy is $50 a yard. Assuming the firm maximizes profit,
a. it will earn zero economic profit in the short run. b. it will shut down immediately. c. it will produce 12 yards of fabric per day. d. it will produce 7 yards of fabric per day. e. it will produce 10 yards of fabric per day.
Banks that receive their charters from the federal government are called
A. government banks. B. state banks. C. federal banks. D. national banks.