If costs increase, what happens to the aggregate supply curve?
What will be an ideal response?
It shifts leftward.
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Under ________ there are many firms selling identical products
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
Neutral taxation is taxing different commodities at the same tax rate.
A. True B. False C. Uncertain
The amount of a commodity that buyers in the market would like to purchase at a particular price is
a. equilibrium b. quantity supplied c. quantity produced d. infinite e. quantity demanded
When exchange rates are fixed and the foreign nation's interest rate increases, what happens next?
A) The home nation's IS curve shifts out because of a depreciation and an increase in the trade balance. B) The home nation's LM curve shifts right, and its interest rate falls. C) Fixed exchange rates force the home nation to raise its interest rates. D) The home nation and the foreign nation are always in equilibrium, so no changes occur.