Because of their effect on interest rates:
a. capital flows weaken monetary policy but strenghen fiscal policy
b. capital flows strengthen monetary policy but weaken fiscal policy
c. the initial effects of a fiscal expansion on aggregate demand are strengthened
d. the initial effects of a monetary contraction are weakened
b
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Refer to the graph shown. If market price increases from $5.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will:
A. decrease output from 750 to 650. B. produce 850 units of output. C. increase output from 650 to 750. D. continue to produce 650 units.
?Exhibit 10A-1 Aggregate demand and supply model
?Beginning in Exhibit 10A-1 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2 . The economy's path to a new long-run equilibrium is represented by a movement from:
A. ?E3 to E1 to E2. B. ?E1 to E3 to E2. C. ?E2 to E1 to E2. D. ?E1 to E2 to E3.
A cost-push inflation spiral results if the Fed's response to stagflation is to keep...
What will be an ideal response?
What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business
What will be an ideal response?