A country recently had a trade deficit of $2.5 trillion and purchased $3 trillion of foreign assets. How many of its assets did foreigners purchase?

A Keynesian short-run aggregate supply curve has a flatter portion and a steep portion. How does an increase in aggregate demand affect the price level differently across these two portions?

a. There is a sharp increase in the price level across the flatter portion and a small increase in the price level across the steep portion. b. There is a sharp decrease in the price level across the flatter portion and a small decrease in the price level across the steep portion. c. There is a small increase in the price level across the flatter portion and a sharp increase in the price level across the steep portion. d. There is a small decrease in the price level across the flatter portion and a sharp increase in the price level across the steep portion.

Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 ? 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the number of women's underwear items that should be packaged together.

A. 7 B. 1 C. 4 D. 3