The shape of a short-run aggregate supply curve basically depends on what happens to production costs and, therefore, to the prices that businesses must receive to cover costs and make a profit as real domestic output expands.

An HMO hires radiology services from India to cut costs. If all else remains equal, this will

A) decrease net exports. B) increase the current account balance. C) decrease the balance of trade. D) decrease the financial account.

To reduce adverse selection

A) firms can use screening. B) both consumers and firms can use screening. C) the government could eliminate all monopolies and oligopolies. D) Both B and C.