The above figure shows the U.S. market for flip-flops. With international trade, the equilibrium price in the United States is ________ and the United States ________ flip-flops
A) $12; imports
B) $12; does not trade
C) $12; exports
D) $14; imports
E) $14; does not trade
A
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The savings rate in an economy equals:
A) aggregate savings divided by GDP. B) GDP minus aggregate consumption. C) GDP divided by aggregate savings. D) aggregate savings multiplied by GDP.
Which of the following best describes the basic characteristics of noncooperative oligopoly models?
A) Managers make decisions based on the strategy they think their rivals will pursue. B) Managers attempt to deliberately mislead their rivals regarding the strategy they will pursue. C) When making decisions, managers basically ignore the mutual interdependence that exists among rivals. D) Managers refuse to negotiate with their rivals when it comes to such decisions as what price to charge.
Which of the following will be reduced during an expansionary monetary policy?
a. the return to saving b. spending c. borrowing d. money supply
Contractionary fiscal policy tools can eliminate an inflationary gap arising from a continuation of current budget policies.
Answer the following statement true (T) or false (F)