Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in the exchange rate and a decrease in worker productivity would result in price ________ and real domestic output ________.
A. E; B
B. F; A
C. G; B
D. F; C
Answer: B
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In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
A _____ generally has less understanding of the firm than a manager and has little knowledge that is likely to improve the quality of the manager's choices
a. specialized residual claimant b. diversified residual claimant c. diversified hierarchy d. specialized hierarchy
What is the value of the spending multiplier when MPC = 0.85 and MPI = 0.3?
a. 1.82 b. 0.85 c. 2.22 d. 1.18 e. 2.50
Refer to the graph shown of a monopolistically competitive firm. The graph shows that:
A. new firms will enter the industry. B. some existing firms will leave the industry. C. the price of the product is $90. D. the industry is in long-run equilibrium.