Other things remaining unchanged, the flatter the aggregate supply curve:
a. the greater the expansionary effect of an increase in aggregate demand.
b. the smaller the inflationary effect of an increase in aggregate demand.
c. the greater the recessionary effect of a decrease in aggregate demand.
d. the greater the expansionary effect of a decrease in aggregate demand.
e. the smaller the recessionary effect of an increase in aggregate demand.
b
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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is the profit maximizing sales price?
A. $47.70 B. $30.00 C. $45.00 D. $50.00
When U.S. residents buy foreign assets from foreigners, the ______.
a. monetary outflows provide foreigners with U.S. dollars b. purchases are recorded as debits in the current account c. monetary inflows provide U.S. residents with foreign currency d. purchases are recorded as credits in the financial account
An open market purchase by the Fed causes the value of the dollar to:
A. rise, increasing net exports. B. rise, reducing net exports. C. fall, increasing net exports. D. fall, reducing net exports.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.