Refer to Figure 4-2. What area represents producer surplus at a price of P1?

A) A + C B) A + C + E C) C D) C + E

C

Economics

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Under a fixed exchange rate system, if the government decides to increase the fixed exchange rate, net exports will ________ and the IS curve will shift to the ________

A) increase; left B) increase; right C) decrease; left D) decrease; right

Economics

Total revenue divided by quantity is

A) average revenue. B) marginal revenue. C) quantity revenue. D) price revenue.

Economics