Suppose that country A pegs its currency to that of country B. Now suppose that there is an adverse demand shock in country A. Country B is more likely to cooperate and increase its money supply in response to country A's adverse demand shock when:
A) country B's output is below its preferred level.
B) country B is experiencing high rates of inflation.
C) country B wants country A to devalue its currency.
D) country A is experiencing high rates of inflation.
Ans: A) country B's output is below its preferred level.
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If the AD curve shifts to the left as a result of a decrease in the money supply growth rate:
A. the economy will temporarily depart from its long-run inflation rate. B. the economy will permanently depart from its long-run growth rate. C. the economy will temporarily depart from its long-run growth rate. D. the economy will adjust immediately and never depart from its long-run growth rate.
Based on the figure above, the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________
A) 4.0 and 7.0; 4.0 and 7.0 B) 0 and 7.0; 4.0 and 7.0 C) 4.0 and 7.0; 0 and 4.0 D) 0 and 4.0; 0 and 7.0 E) More information is needed to answer the question.
________ taxes are taxes paid when purchasing specific goods such as alcohol, tobacco, and gasoline
A) Property B) Payroll C) Wealth D) Excise
The aggregate demand curve:
a. would be little affected by a technological advancement. b. shifts to the right when spending decreases. c. shifts to the left when there is a decrease in taxes. d. cannot move independently of the aggregate supply curve. e. shifts to the right when there is an expectation that future income will fall.