.If Asian economies suffer a serious economic slump, what will happen to U.S. net exports and Aggregate Demand (AD)?
What will be an ideal response?
Net exports will decrease and AD will shift leftward.
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Which of the following is an example of an automatic stabilizer during a recession?
A) A decrease in tax revenue due to an increase in unemployment B) An increase in money supply due to a decrease in bank deposits C) An increase in interest rates due to a decrease in investment D) A decrease in inflation due to an increase in consumption
Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is ________ because ________
A) 8 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower B) 4 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher C) 8 percent; she would earn more than her desired amount of 6 percent D) 8 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher E) 4 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower
How does the short-run equilibrium of a monopolistic competitor differ from a monopolist? How does it differ from a perfect competitor?
What will be an ideal response?
A demand curve usually has a
a. negative slope because price and quantity demanded are inversely related b. negative slope because as price rises, demand falls c. positive slope because price and quantity demanded are positively related d. positive slope because price and quantity demanded are inversely related e. slope of zero because there is no change along a demand curve when everything else is held constant