If Iraq were to become a stable oil producing friend of the U.S., this would likely
A. decrease aggregate demand.
B. increase aggregate supply.
C. decrease aggregate supply.
D. increase aggregate demand.
Answer: B
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Two variables that affect the slope of the aggregate demand curve are
A. government purchases and real taxes. B. tax rates and interest rates. C. government purchases and interest rates. D. exchange rates and income rates.
What name is given to the economic process of turning inputs into outputs that a business will sell to customers?
A. Revenue B. Production C. Profit maximization D. Profit
Suppose Country X and Country Y each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country X has 100 million people and Country Y has 175 million people. In this situation, per capita real Gross Domestic Product (GDP) is
A. the same in both countries. B. higher in Country Y. C. higher in Country X. D. an irrelevant factor.
If a firm has $1,000,000 in fixed costs and variable costs equal to $100 for every unit they produce,
A. their marginal costs are decreasing. B. the marginal costs are increasing. C. their average costs are decreasing. D. their fixed costs are decreasing.