Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil
B) increase in government spending; increase in the money supply
C) increase in taxes; decrease in government spending
D) decrease in taxes; increase in the price of oil
A
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In monopolistic competition, profit is maximized by producing so that marginal revenue
A) equals price. B) is negative. C) equals marginal cost and which are less than price. D) equals average total cost but not marginal cost. E) equals marginal cost and equals price.
The BP curve is upward sloping if assets are perfectly substitutable
Indicate whether the statement is true or false
Capital outflows in the balance of payments accounts include
a. purchases of financial assets by U.S. residents. b. direct investments in foreign countries. c. indirect investments in foreign countries. d. purchases of U.S. real estate by foreigners. e. all of the above
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.