An increase in net exports shifts the aggregate demand curve to the left.
a. true
b. false
Ans: b. false
You might also like to view...
If the Fed buys government securities from commercial banks in the open market ________.
A. commercial banks give the securities to the Fed, and the Fed decreases the banks' reserves B. the Fed gives the securities to the commercial banks and decreases the banks' reserves C. commercial banks give the securities to the Fed, and the Fed increases the banks' reserves D. the Fed gives the securities to the commercial banks and increases the banks' reserves
The economic theory of labor markets leads to the conclusion that professional athletes who are paid tens of thousands of dollars per appearance must be paid more than their marginal revenue product
a. True b. False Indicate whether the statement is true or false
Which of the following statements best describes the nature of the Phillips curve?
a. A downward-sloping Phillips curve should be interpreted as valid for long-run periods of several years, but over shorter periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower. b. A downward-sloping Phillips curve should be interpreted as valid for short-run or longer periods, but when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower. c. A downward-sloping Phillips curve should be interpreted as valid for short-run periods of several years, but over longer periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower. d. A downward-sloping Phillips curve should be interpreted as valid for short-run periods of several years, but over longer periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that either unemployment or inflation may become higher or lower.
The chemical industry has a Lerner index of 0.67. Based on this information, a firm with marginal cost of $10 should charge a price of:
A. $30.30. B. $14.93. C. $3.30. D. $6.70.