An expenditure-changing policy
A) alters the direction of the economy's total demand for goods and services.
B) alters the level of the economy's total demand for goods and services.
C) has no effect on aggregate demand.
D) is the same thing as an expenditure-switching policy.
E) affects aggregate supply but not aggregate demand.
B
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Which of the following statements is correct?
I. The ERM used the Deutsche Mark as the base or center currency. II. The ERM allowed the Italian central bank autonomy over its policies. III. The ERM allowed the Bundesbank monetary autonomy. A) I only B) II only C) III only D) I, II, and III
The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, it:
A. earns an economic profit of $16 per day. B. earns an economic profit of $64 per day. C. incurs an economic loss of $16 per day. D. incurs an economic loss of $64 per day.