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If the dollar appreciates in value relative to foreign currencies: A. Aggregate demand decreases because C decreases B. Aggregate demand increases because C increases C. Aggregate demand decreases because net exports decrease D. Aggregate demand increases because net exports increase
Price controls are government restrictions on prices charged for goods and services in the market. Government policies regulating prices can be controversial because they keep prices artificially low and can cause shortages. How do price ceilings for..
Assume which the market for avocados is perfectly competitive. The typical agribusiness firm is earning positive economic profit in the short-run equilibrium.
Sam's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sam produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Sam fac..
Why do classical economists and Keynesian economists agree on the long-run effects of a fall in aggregate demand but not on the short-run effects?
A 15-year municipal bond was issued 5 years ago. its coupon interest rate is 8%, interest payments are made semiannually, and its face value is $1000. if the urrent market interest rate is 12.36% what should the bonds price?
If the government decides to increase the monetary amount of disability insurance payments to those who have been permanently disabled, it will make life easier for those who have been disabled. The fact that it could cause some individuals to falsel..
Suppose that Rob and Big both raise animals and sell them. Because Rob and Big have different talents, they have varying abilities to raise these animals. In 1 day, Rob can produce either 10 cows or 20 pigs.
Assume that the industry is monopolized by only one company. Write the equation of the TR curve and then plot the TR curve(with Q along the horizontal axis and TR along the vertical axis) for this company. Comment on the shape of the TR curve.
Assume that a painter produces 20 paintings this year and 20 paintings next year. What is the annual change in nominal GDP if the price of paintings rises from $1,000 this year to $1,500 next year? Can you conclude that the economy grew from this yea..
Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.
Suppose there are two types of law school students: short haired and long haired. Additionally, law students generally choose between two types of firms when they graduate: big and small. Suppose the probability of being short haired is .8, and a sho..
If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement
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