In a two-period model with production, a shock that shifts the output demand curve to the right, and does not shift the output supply curve
A) causes an increase in the current account surplus and an increase in real output.
B) causes no change in the current account surplus and an increase in real output.
C) causes a decrease in the current account surplus and no change in real output.
D) causes a decrease in the current account surplus and an increase in real output.
C
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Comment on the following statement: "In the short run, a firm's total costs will be zero if the firm chooses to produce nothing."
What will be an ideal response?
In 2017, plowback accounted for approximately ____ of corporate financing while new stock sales accounted for approximately ____.
A. $1.4 trillion; negative $379 billion B. $65 billion; $1 trillion C. $1 trillion; negative $65 billion D. negative $65 billion; $1 trillion
Opportunistic behavior on the part of the employer is possible because:
a. contracts are often incomplete and leave room for implicit understandings between the two parties. b. employees often reduce their effort level if they are important to the company. c. it is difficult to monitor all employees and their performances. d. good quality work can be easily measured.
"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements
a. are essentially correct. b. contain one error; the lower gasoline prices would cause an increase in the quantity demanded of gasoline, not an increase in demand. c. contain one error; the lower gasoline prices would increase the quantity demanded of large cars, not the demand. d. contain two errors; the lower gasoline prices would cause the quantity of gasoline demanded (rather than the demand) to increase, and the lower gasoline price would cause an increase in quantity demanded (rather than the demand) for large cars.