depression, such as has existed for a long perod in Japan 43, During a bank will
ID: 1110053 • Letter: D
Question
depression, such as has existed for a long perod in Japan 43, During a bank will er an sucro b, makes the depression worse. e. is neutral with respect to the fluctuations d. is counter-cyclical and stabilizing. reduced. This cemult of the war in Afghanistan, the population of Afghanistan as well as their capital stock was reduced. This can be illustrated by aggregate supply curve a. shifting outward. b. becoming flatter. e. shifting inward. d. becoming more elastic. then 45. If scientific research produces a technological breakthrough in the production of computer a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase, allowing businesses to cut back production. 46. When inflation occurs, net exports will a. increase as imports decrease. b. increase as exports increase. c. decrease as imports decrease. d. decrease as imports increase. 47. In Figure 2, which graph best illustrates the situation of an economy near full employment that experiences an increase in autonomous consumer spending? b. (2) c. (3) d. (4) Redl ODP Read GDP 2) Redl GDP 0) Read ODPExplanation / Answer
43. The correct option is(b). they will reduce the money supply which will further reduce AGGREDATE DEMAND AND WILL DAMPEN THE PREGRESSION.
44. The correct option is (c). The Aggregate supply will fall in the economy and the AS will shift inward(up) or (left).
45(c). Technological improvements help reduce cost and increase profit.
46. (c) Net exports = Exports –Imports. As there is inflation, domestic goods are relatively expansive and therefore demand shifts towards the imports and imports increase this decreases the net exports.
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