Other things equal, appreciation of the dollar:
A. increases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources.
B. increases aggregate demand in the United States and may decrease aggregate supply by
reducing the prices of imported resources.
C. decreases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources.
D. decreases aggregate demand in the United States and may reduce aggregate supply by
increasing the prices of imported resources.
C. decreases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources
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Which of the following statements about the circular-flow diagram is correct?
a. One must imagine that the economy operates without money in order to make sense of the diagram. b. The diagram leaves out details that are not essential for understanding the economic transactions that occur between households and firms. c. The government cannot be excluded as a decision maker in a circular-flow diagram. d. All of the above are correct.
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10