How would aggregate demand change if foreign incomes increase and the exchange rate value of the dollar increases?
a. Neither change would affect aggregate demand.
b. The increase in income would decrease aggregate demand; the increase in the exchange rate would increase aggregate demand.
c. The increase in income would increase aggregate demand; the increase in the exchange rate would decrease aggregate demand.
d. Both changes would decrease aggregate demand.
C
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In the figure above, Gap maximizes its profit if it sells ________ jackets per day
A) 100 B) 64 C) 129 D) 133
Economic growth will NOT result in deflation if aggregate demand shifts
A) outward to the right at the same speed as aggregate supply. B) inward to the left at the same speed as aggregate supply. C) outward to the right as aggregate supply shifts inward to the left. D) inward to the left as aggregate supply shifts outward to the right.
Human beings
A) have unlimited wants.
B) think they have unlimited wants, but really have limited needs.
C) have limited wants, but unlimited needs.
D) know what their needs are, but do not know what their wants are.
Which of the following statements is FALSE?
A. An unregulated, profit-maximizing monopolist will not operate in the inelastic portion of the demand curve. B. The marginal revenue earned by a monopolist will always be less than the product's price. C. For a profit-maximizing monopolist, marginal revenue equals marginal cost. D. Typically there are numerous very close substitutes for the product of a monopolist.