When ________, the price level rises, inventories decrease and firms respond by increasing output and employment.
A. aggregate demand increases
B. aggregate supply decreases
C. aggregate demand decreases
D. aggregate supply increases
Answer: A
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A substantial amount of trade between industrialized countries is intraindustry or intrafirm trade rather than interindustry trade
Indicate whether the statement is true or false
A first-class Broadway musical typically costs how much to produce?
If the Deutsche Mark and the British pound exchange rates are fixed, and the German Bundesbank conducts a tight monetary policy to counteract an expansion in German GDP, interest rates in Germany will ____, which will force Britain to ______.
A) fall; default B) rise; raise its rates to maintain interest parity and the fixed exchange rate C) fall; sell gold D) rise; lower its rates to maintain interest parity and the fixed exchange rate
Which of the following statements is true?
a. Emissions-trading is trading that allows firms to buy and sell the right to pollute. b. The Coase Theorem is the proposition that private markets can rarely ever achieve social efficiency. c. The free-rider problem refers to those who ride on public transit systems without paying. d. Government failure has never occurred in the United States.