A decrease in aggregate demand will cause a greater decline in real output the:
A. less flexible is the economy's price level.
B. more flexible is the economy's price level.
C. steeper is the economy's AS curve.
D. larger is the economy's marginal propensity to save.
A. less flexible is the economy's price level.
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If total fixed cost increases, which of the following will NOT change?
A) total cost B) average fixed cost C) marginal cost D) average total cost E) ALL costs increase when total fixed cost increases.
The Prisoner's Dilemma is an example of
A) market signaling. B) a zero-sum game. C) a non-zero sum, non-cooperative game with a dominant strategy. D) adverse selection.
If the errors are heteroskedastic, then
A) the OLS estimator is still BLUE as long as the regressors are nonrandom. B) the usual formula cannot be used for the OLS estimator. C) your model becomes overidentified. D) the OLS estimator is not BLUE.
Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy. B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy. C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy. D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.