A decrease in the price of foreign oil will affect the U.S. economy by
A. increasing aggregate demand.
B. decreasing aggregate demand.
C. increasing aggregate supply.
D. decreasing aggregate supply.
Answer: C
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If the price of inputs rises and foreign income rises:
a. Price index rises, and the change in real GDP is uncertain. b. Price index falls, and real GDP rises. c. Price index falls, and real GDP falls. d. Price index falls, and the change in real GDP is uncertain. e. The change in price index is uncertain, and real GDP rises.
Macroeconomics is the study of the economy as a whole
a. True b. False Indicate whether the statement is true or false
An increase in both supply and demand causes which of the following?
A. Equilibrium price falls. B. Equilibrium price rises. C. Equilibrium price change is indeterminate. D. Equilibrium quantity change is indeterminate.
In order to maximize its profit, a single-price monopoly always produces output in the inelastic range of the demand for its product
Indicate whether the statement is true or false