Suppose we observe the price level increasing and real GDP decreasing. An explanation for this is that
A. the dollar strengthened and the effect on aggregate supply was less than the effect on aggregate demand.
B. the dollar weakened and the effect on aggregate supply was less than the effect on aggregate demand.
C. the dollar strengthened and the effect on aggregate supply was greater than the effect on aggregate demand.
D. the dollar weakened and the effect on aggregate supply was greater than the effect on aggregate demand.
Answer: D
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The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?
A) country A B) country B C) country C D) country D
Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:
A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy.
The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves
a. True b. False Indicate whether the statement is true or false
In a market characterized by a single seller and many buyers, will a seller's initiative to improve the quality of its product at a higher cost of production be profitable?