If the price level falls but people don't feel richer because of that fall, then the AD curve would likely:
A. shift in.
B. be flatter than it otherwise would be.
C. be steeper than it otherwise would be.
D. shift out.
Answer: C
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Suppose the supply of dollars increased from S1 to S2 in Figure 36.3. As a result of this change,
A. U.S. computer exports to Switzerland will be lower-priced. B. The Swiss franc will lose value worldwide. C. Swiss chocolate imports to the United States will be lower-priced. D. A trade surplus will be created in Switzerland.
Tariffs to limit imports to "protect U.S. jobs" will also
A) stimulate exports. B) limit exports. C) decrease import prices. D) reduce domestic production of import-threatened products.
A monopoly’s marginal revenue curve is always
a. is always above the demand curve. b. identical to that of a perfectly competitive firm. c. twice as steep as the demand curve. d. none of the above.
Three hundred firms supply the market for paint. For fifty of the firms, their short-run average variable costs are minimized at $10 and short-run total costs are minimized at $15
For the remaining firms, the short-run average variable costs and short-run average total costs are minimized at $20 and $25, respectively. If each firm has a U-shaped marginal cost curve then the short-run market supply curve is A) U-shaped too B) kinked at $10 C) kinked at $15 D) kinked at $20 E) kinked at $25