The aggregate demand curve slopes downward in part due to the:
A. negative relationship between the price level and net exports.
B. positive relationship between the price level and exports.
C. negative relationship between the price level and imports.
D. All of these are true.
A. negative relationship between the price level and net exports.
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If a Cournot duopolist announced that it will double its output, the other firm does not view the announcement as credible because
A) the announcing firm's profits will fall if it carries out the threat. B) the other firm's profits will fall if the announcing firm carries out the threat. C) the other firm's profits will rise if the announcing firm carries out the threat. D) the other firm will double output also.
Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment B) a decrease in both the real wage and the natural rate of unemployment C) an increase in the real wage and no change in the natural rate of unemployment D) a decrease in the real wage and an increase in the natural rate of unemployment E) none of the above