All of the following are likely results of a negative demand shock EXCEPT
A) a negative output gap.
B) lower inflation.
C) IS shifts to the left.
D) Phillips curve shifts to the left.
D
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In a centrally planned economy, the households and firms decide how economic resources will be allocated
Indicate whether the statement is true or false
The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?
A) Healthy Bars' intent to bid on a government contract to supply public schools with healthy snack foods B) the planned production amounts of Healthy Crunch, another competitor firm C) new government safety regulations for packaging snack foods D) a forthcoming change in Healthy Bars' pricing policy
When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A) It earns a high rate of interest, so its purchasing power is maintained when prices rise. B) It is easily and readily converted into money without any loss in purchasing power. C) The face value of the asset is somewhat less than its value when converted into currency. D) The asset holds its value over time.
If five firms of similar sizes join to form a cartel, then it is most likely that
A) they will charge a common, lower market price. B) they will collectively produce less than before. C) all five firms will earn the same profits as before. D) all five firms as a group will have falling profits, but increased output.