Everything else equal, the AC curve will shift downward if
A. input prices rise.
B. input MPPs rise.
C. output rises.
D. output falls.
Answer: B
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Holding the real money supply constant, an increase in real money demand will reduce interest rates
Indicate whether the statement is true or false
Which of the following is not an argument usually presented in favor of trade restrictions?
a. national security b. infant industry c. cheap foreign labor d. diversity of industry e. increased efficiency
Raising the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply
A) raises; increase B) raises; decrease C) lowers; increase D) lowers; decrease
Other things the same, if workers and firms expected inflation to be 2%, but it is only 1% then
a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall.