An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Based on the information above, video games have
a. A unit elastic demand curve b. A inelastic demand curve c. A elastic demand curve d. A perfectly elastic demand curve
The total earnings arising from the production of the GDP is known as
a. real GDP. b. national income. c. personal income. d. discretionary income.
If one player defects in a repeated game, and his opponent is following a tit-for-tat strategy, we can predict the opponent will:
A. renegotiate. B. cooperate and try to get his opponent to follow. C. defect in the next round. D. collude.
Which of the following is a FALSE statement concerning purchasing power parity?
A) Purchasing power parity states that dollars will tend to exchange for pounds at a rate that maintains a constant purchasing power of a given quantity of a currency. B) It is rare to see deviations from the purchasing power parity value of currencies. C) Over the long run, purchasing power parity exerts influence over exchange rates. D) An overvalued dollar buys more in Britain than it does in the United States.