Refer to the diagram. The real-business cycle view of recession would best be described by:





A.  a decrease of aggregate demand from AD 1 to AD 2 , followed by a decrease in aggregate

supply from AS LR1 to AS LR2 .

B.  an increase in aggregate demand from AD 1 to AD 2 , which in turn caused a decrease in

aggregate supply from AS LR1 to AS LR2 .

C.  a decrease in aggregate supply from AS LR1 to AS LR2 , followed by a decrease in aggregate demand from AD 1 to AD 2

D.  a decrease in aggregate supply from AS LR1 to AS LR2 , followed by an increase in aggregate

demand from AD 2 to AD 1


C.  a decrease in aggregate supply from AS LR1 to AS LR2 , followed by a decrease in aggregate demand from AD 1 to AD 2

Economics

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OPEC is an influential international oil exporting organization. It can be categorized as which of the following market structure.

a) monopolistic competition b) monopoly c) oligopoly d) pure competition

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Financial monetary assets which often cannot be readily used in commercial exchanges are included in

A) M1. B) M2. C) prepaid accounts. D) credit cards.

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Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?

What will be an ideal response?

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Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Donnie's Donuts?

A) $150,000 B) $350,000 C) $600,000 D) $1.2 million

Economics