The aggregate supply curve is horizontal in the intermediate range
a. True
b. False
Indicate whether the statement is true or false
False
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? A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases. d. all of the above
Which of the following would be an example of contractionary fiscal policy?
A. Congress enacts economic sanctions on North Korea. B. Congress increases the corporate tax rate by 3 percent. C. Congress decreases the rate for the top income tax bracket by 5 percent. D. Congress increases infrastructure spending by 2 percent.
Spending on the war in Afghanistan is essentially categorized as government purchases. How do decreases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right. B) They will shift the aggregate demand curve to the left. C) They will move the economy up along a stationary aggregate demand curve. D) They will move the economy down along a stationary aggregate demand curve.
Being a first mover means:
A) Being the first firm to offer a product in a particular market. B) Being successful. C) Asking for failure. D) Nothing unless the firm continues to be the first mover. E) That there is never a benefit to not being the first mover.