Other things the same, if the price level is lower than expected, then some firms believe that the relative price of what they produce has
a. decreased, so they increase production.
b. decreased, so they decrease production.
c. increased, so they increase production.
d. increased, so they decrease production.
b
Economics
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If exchange rates are floating, an expansionary fiscal policy in the United States will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
Economics
The difference between producer surplus and profit is always the associated
A) opportunity costs. B) total costs. C) variable costs. D) fixed costs.
Economics