If exports and imports both fell, but exports fell less than imports,
a. AD would decrease

b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.

b

Economics

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When the aggregate supply curve intersects the aggregate demand curve at a level of real GDP that exceeds potential GDP, is there an inflationary gap or a deflationary gap? What adjustments will take place?

What will be an ideal response?

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If average cost is decreasing

A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less than average cost. D) Not enough information is given.

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