For a normal good, a decrease in demand is caused by

In the New Keynesian open economy model, if the exchange rate is fixed

A) fiscal policy and monetary policy are powerless. B) fiscal policy is an effective stabilization tool. C) a change in current total factor productivity increases output. D) monetary policy is an effective stabilization tool.

A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . After a year, the manager has an opportunity to outsource production to another company at a cost per unity of $1.75 . If you are the manager, you

a. should consider the $400,00 . as sunk cost and therefore it should not be relevant to the decision. b. should base your decision upon economic profit and not accounting profit c. should avoid the fixed-cost fallacy d. all the above