When aggregate demand decreases rapidly, the economy is likely to experience
A. inflation.
B. an economic boom.
C. economic growth.
D. recession.
Answer: D
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One implication of the shape of the demand curve facing a perfectly competitive firm is that:
A. if the firm increases its price above the market price, it will earn higher revenue. B. if the firm increases its price above the market price, it will earn zero revenue. C. the market would be unable to reach a new equilibrium if demand changed. D. if the firm decreases its price below the market price, it will earn higher revenue.
Under a fixed-rate unified currency regime, each country belonging to the system
a. may pursue an independent monetary policy. b. gives up its monetary policy independence to one central bank with the power to expand and contract the money supply. c. is committed to conducting highly expansionary monetary policy in order to maintain the convertibility of its currency. d. must fix its domestic interest rates in order to maintain the convertibility of its currency.
Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed
A) structurally; frictionally B) structurally; structurally C) frictionally; frictionally D) frictionally; structurally
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point A to Point B, there has been
A. an increase in quantity demanded and an increase in quantity supplied. B. an increase in quantity demanded and an increase in supply. C. an increase in demand and an increase in quantity supplied. D. an increase in demand and an increase in supply.