In the late 1920s, the U.S. economy experienced a decrease in investment, which perhaps triggered the Great Depression. The decrease in investment
A) increased aggregate supply.
B) decreased aggregate supply.
C) increased aggregate demand.
D) decreased aggregate demand.
E) increased potential GDP.
D
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Helen's Honey Hut supplies 20 jars of honey per week when the price of honey is $6 per jar and supplies 30 jars per week when the price of is $8 per jar, so the price elasticity of supply over this price range is 1.4
a. True b. False Indicate whether the statement is true or false
In monopolistically competitive markets, economic losses
a. suggest that some existing firms will exit the market. b. suggest that new firms will enter the market. c. are minimized through government-imposed barriers to entry. d. are never possible.
The sum of national saving and capital inflows from abroad must equal:
A. capital outflows. B. aggregate demand. C. domestic investment in new capital goods. D. the trade deficit.
It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur.
What will be an ideal response?