If two goods are considered complements and the price of one increases, the other good's
A. demand curve will shift to the right.
B. supply curve will shift to the left.
C. demand curve will shift to the left.
D. supply curve will shift to the right.
Answer: C
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In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in
A. saving or an increase in government spending. B. taxes or an increase in government spending. C. interest rates or a decrease in taxes. D. government spending or an increase in taxes.
A monopsonist faces a constant elasticity of labor supply of 1.5. If the monopsonist pays $15 per hour, its marginal expenditure equals
A) $15. B) $25. C) $7. D) 25%.
Which of the following is not likely to occur because of exchange rate fluctuations?
A. An end to flexible exchange rates worldwide. B. Inflation. C. An increase in the demand for imports. D. A decrease in the demand for exports.
A drop in the price of oil will result in
A. an increase in the demand for oil. B. a decrease in the demand for oil. C. an increase in the quantity of oil demanded. D. a decrease in the quantity of oil demanded.