A rise in prices of imported resources will cause aggregate:

a. Demand to decrease
b. Supply to increase
c. Supply to decrease
d. Demand to increase


c. Supply to decrease

Economics

You might also like to view...

To say that a perfectly competitive market is in short-run equilibrium is to say that

a. at least one firm is earning an economic profit b. at least one firm is earning a normal profit c. no consumer wishes to buy any more or any fewer units at the market price d. each firm is earning an economic profit e. every consumer is purchasing a positive amount of output

Economics

Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's central bank intervenes to raise the value of the Swiss franc, then:

a. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base falls. b. The supply of Swiss francs in the foreign exchange market rises, and Switzerland's monetary base rises. c. The supply of Swiss francs in the foreign exchange market rises, and Switzerland's monetary base falls. d. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base rises. e. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base remains unchanged.

Economics

Superhighways, public housing facilities, and defense projects are all ways that the President can:

A. close a recessionary gap B. close an inflationary gap C. combat inflation D. raise unemployment

Economics

The arithmetic value of (1 - MPC) equals

A. NDP. B. MPS. C. APS. D. APC.

Economics