A favorable supply shock abroad would
A. increase U.S. imports and decrease aggregate demand.
B. decrease U.S. net exports and reduce aggregate supply.
C. decrease U.S. net exports and decrease national income.
D. increase U.S. net exports and increase aggregate demand.
Answer: C
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If a particular choice that an individual faces gives him a benefit of $20 but costs $30, the net benefit from making this choice equals:
A) $20. B) $10. C) -$10. D) -$30.
Except for perfect substitutes or perfect complements, indifference curves
A) are straight lines with a positive slope. B) slope upward to the right. C) are bowed in toward the origin. D) are bowed out away from the origin.
Refer to Table 9-10. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 14.3 B) 87.5 C) 114.3 D) 160
All of the following statements would make a reasonable hypothesis to test except
A) Long-run economic growth leads to higher real GDP per capita. B) An inflation rate below 3% is good for an economy. C) Increasing tax rates eventually lead to a decrease in work effort. D) Decreases in the unemployment rate lead to increases in the rate of inflation.