In the short-run macro model, a decrease in the money supply will
a. move the economy to the right along the aggregate expenditure line
b. move the economy to the left along the aggregate expenditure line
c. shift the aggregate expenditure line upward
d. shift the aggregate expenditure line downward
e. not affect the aggregate expenditure line
D
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Purchases of domestic assets by foreign firms or households is called a:
A. trade deficit. B. trade surplus. C. capital outflow. D. capital inflow.
A outward shift of the aggregate supply curve could be caused by
A. higher import prices. B. lower import prices. C. energy shortages. D. rising wage rates.
The elasticity of demand for gasoline is likely to be
A. small and shrink as time goes by. B. small, but grow as time goes by. C. large and shrink as time goes by. D. large and grow as time goes by.
If a depletable resource is selling in a perfectly competitive market, its price will rise by greater and greater dollar amounts each year
a. True b. False Indicate whether the statement is true or false