A recession in another country the U.S. actively trades with would
A. increase U.S. net exports and increase aggregate demand.
B. increase U.S. net exports and increase aggregate supply.
C. reduce U.S. net exports and reduce aggregate demand.
D. reduce U.S. net exports and increase aggregate
Ans: C. reduce U.S. net exports and reduce aggregate demand.
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Contrary to Populist views, the lending practices during industrialization provided ample opportunities for firms and agriculturalists to invest, grow and develop
Indicate whether the statement is true or false
In a reserve currency system (such as the Bretton Woods system or the European ERM), currencies peg to a reserve currency. As a result:
A) only the reserve currency country has monetary autonomy. B) all countries, other than the reserve currency country, have monetary autonomy. C) all countries have monetary autonomy. D) no country has monetary autonomy.
On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n):
A. direct relationship as shown by an upward-sloping line G. B. direct relationship as shown by a downward-sloping line G. C. inverse relationship as shown by an upward-sloping line G. D. inverse relationship as shown by a downward-sloping line G.
A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $200 per unit at an output rate of 100 units. Average variable costs are at the minimum value of $100 per unit at an output rate of 50 units. Marginal cost equals $150 per unit at an output rate of 75 units. It can be concluded that the short-run profit-maximizing output rate is
A. 75 units, at which the firm earns positive economic profits per unit sold. B. 50 units, because price is less than average variable costs. C. 75 units, at which the firm earns zero economic profits per unit sold. D. 75 units, at which the firm earns negative economic profits per unit sold.