For a country in recession
A. an increase in exports will increase aggregate demand and output
B. an decrease in exports will increase aggregate demand and output
C. an increase in imports will increase aggregate demand and output
D. none of the above
Ans: A. an increase in exports will increase aggregate demand and output
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For firms that sell one product in a perfectly competitive market, the market price:
A. will remain constant regardless of an individual firm's output decision. B. is equal to the average total cost of a firm. C. is equal to the marginal cost of a firm. D. All of these are true.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
The business cycle dating committee determines when peaks and troughs occur by looking at
A. mainly at real GDP figures. B. mainly at the unemployment rate. C. data from our economy and comparing it to data from other major nations. D. mainly at employment, industrial production, personal income, and manufacturing and trade revenue.
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A. decrease and aggregate supply would increase. B. increase and aggregate supply would decrease. C. remain unchanged and aggregate supply would remain unchanged. D. decrease and aggregate supply would decrease.