Which of the following increases the demand for a normal good?
A) a decrease in income
B) an decrease in the price of a substitute
C) an increase in the price of a complement
D) the price of the good is expected to increase in the future
D
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) Unemployment will decline. B) The aggregate demand curve will shift to the left. C) Output will decline. D) Prices will decline.
Which of the following goods is least likely to be in a market basket?
A. A missile B. A gallon of milk C. A pair of khaki pants D. A tank of heating oil
The overriding factor in analyzing long-run changes in the exchange rate is:
a. the exchange rate in the period t- 1. b. how a permanent change in the supply of money is transmitted to prices and interest rates. c. the reaction of traders as they conduct arbitrage and speculation. d. the notion that there is no long run, only a series of short-run measurements.
A new entrant can deter the brand advantage enjoyed by an existing firm by
A. offering their product at a comparatively lower price. B. offering government certified products. C. investing in specific assets. D. getting licenses and patents for their products.