A decrease (leftward shift) of the aggregate supply curve will ______ the level of output and ______ the price level.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
D. decrease; increase
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Other things being equal, a technological change that raises the value of marginal product of capital raises the rental rate of capital because the
A) supply curve of capital shifts leftward. B) supply curve of capital shifts rightward. C) demand curve for capital shifts rightward. D) demand curve for capital shifts leftward.
If inflation in Mexico is lower than it is in the United States,
A) the purchasing power of the dollar in buying American goods will rise relative to the peso. B) the value of the peso will rise in the long run. C) the value of the dollar will rise in the long run. D) the purchasing power of the peso in buying Mexican goods will fall relative to the dollar.
A discount bond is also called a ________ because the owner does not receive periodic payments
A) zero-coupon bond B) municipal bond C) corporate bond D) consol
The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:
a. market surplus b. market shortage c. buyer surplus d. seller surplus.