Which of the following is correct?
a. An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts left.
b. An increase in stock prices reduces consumption spending so that aggregate demand shifts left.
c. An increase in the price level causes the exchange rate to rise so that aggregate demand shifts left.
d. A recession in other countries reduces U.S. net exports so that U.S. aggregate demand shifts left.
d
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The owners will shut down a perfectly competitive firm if the price of its good falls below its minimum
A) average total cost. B) average marginal cost. C) average variable cost. D) wage rate.
Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries
A) country X will produce product A and country Y will produce product B. B) country X will produce product B and country Y will produce product A. C) country X will refuse to trade with country Y since country X has a comparative advantage in both products. D) country Y will refuse to trade with country X since country Y has a comparative advantage in both products.