A decrease in aggregate supply means:
A. Both the real domestic output and the price level would decrease
B. The real domestic output would increase and rises in the price level would become smaller
C. The real domestic output would decrease and the price level would rise
D. Both the real domestic output and rises in the price level would become greater
C. The real domestic output would decrease and the price level would rise
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Refer to the scenario above. Which of the following techniques is used to arrive at the optimum decision in the scenario?
A) Optimization in levels B) Comparative statics C) Total net benefit approach D) Principal of Optimization at the Margin
The concern of economists with respect to the trade deficit is whether it is
a. sustainable at current levels. b. desirable at current levels. c. under-specified. d. overestimated. e. the result of the financial crisis.