The price of good X has a pattern such that P = $3 on Monday through Thursday of every week, and P = $2 on Fridays. If speculators begin participating in the market for good X, their actions will likely lead to a(n) ______________ in the price of good X on Monday through Thursday and a(n) _______________ in the price of good X on Friday
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
C
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The reason that higher interest rates reduce aggregate demand in an open economy with capital flows is that investment
A. increases generated by higher interest rates are offset by net export decreases. B. decreases generated by higher interest rates are coupled with net export decreases. C. decreases generated by higher interest rates are offset by net export increases. D. increases generated by higher interest rates are coupled with net export increases.
Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.
The CPI is the price index used to calculate real GDP
a. True b. False
A similarity between monopoly and monopolistic competition is that in both market structures
a. strategic interactions among sellers are important. b. there are a small number of sellers. c. sellers are price makers rather than price takers. d. there are only a few buyers but many sellers.