The period when output and living standards decline is referred to as:
A.
Inflation
B.
Economic decline
C.
An inventory downturn
D.
A recession
D.
A recession
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If a good is considered a normal good, the demand curve will shift ________ when income increases because ________
A) right; the income and substitution effects move in the same direction. B) right; the income and substitution effects move in the opposite direction. C) left; the income and substitution effects move in the same direction. D) left; the income and substitution effects move in the opposite direction.
In a Cournot oligopoly, the ________ firms in the market, the ________ the equilibrium quantity and the ________ the equilibrium price.
A) less; larger; lower B) less; smaller; lower C) more; larger; lower D) more; smaller; higher
The correct chain of causation illustrating the changes caused by monetary policy is
a. money, interest rates, C + I + G + (X ? IM), I. b. money, interest rates, I, C + I + G + (X ? IM). c. C + I + G + (X ? IM), I, interest rates, money. d. I, C + I + G + (X ? IM), money, interest rates.
Firms in a perfectly competitive industry are earning economic losses. This is
A. a signal to government officials that a subsidy is needed for the firms in the industry. B. a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable. C. a signal that the entrepreneurs are doing a poor job and should become workers for someone else. D. a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods.