Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Large shareholders can sometimes influence a corporation's decisions without making efforts to replace its management
Indicate whether the statement is true or false
Which of the following is not a barrier to entry for monopoly?
A. a patent B. government licensing C. large economies of scale D. a large number of existing firms in a market
The budget deficit decreases during economic booms and increases during recessions.
Answer the following statement true (T) or false (F)
In an open economy, the government budget deficit tends to.
a. attract foreign capital. b. be less important than the current account deficit. c. crowd out private investment. d. crowd out imports. e. depreciate the currency.