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
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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
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.
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?
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