In the short-run, a tax increase
A) shifts the DD curve to the right, increases output and appreciates the currency.
B) shifts the AA curve to the left, increases output and depreciates the currency.
C) shifts the AA curve to the left, decreases output and depreciates the currency.
D) shifts the AA curve to the left, increases output and appreciates the currency.
E) shifts the DD curve to the left, decreases output and depreciates the currency.
E
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Explain the three fundamental decisions that firms in perfectly competitive markets mustmake. Explain how these decisions are interrelated
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The rate of natural increase in the population of developing countries is most correlated with
(a) advances in developed country technology (b) increases in developing country income (c) an increase in the fertility rate (d) all of the above.