HW5answer2 (1) - 5TH HOMEWORK(PRINCIPLES OF ECONOMICS II 1 Which of the following is correct a Short run fluctuations in economic activity happen only

HW5answer2 (1) - 5TH HOMEWORK(PRINCIPLES OF ECONOMICS II 1...

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5THHOMEWORK (PRINCIPLES OF ECONOMICS II)1.Which of the following is correct?a.Short run fluctuations in economic activity happen only in developing countries.b.During economic contractions most firms experience rising sales.c.Recessions come at regular intervals and are easy to predict.d.When real GDP falls, the rate of unemployment rises.ANS: D2.When we say that economic fluctuations are “irregular and unpredictable,” we mean that3.Which of the following is correct?4.Which of the following is correct?5.Other things the same, a fall in an economy's overall level of prices tends toraise both the quantity demanded and supplied of goods and services.raise the quantity demanded of goods and services, but lower the quantity supplied.lower the quantity demanded of goods and services, but raise the quantity supplied.lower both the quantity demanded and the quantity supplied of goods and services.
B6..The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?7.If speculators lost confidence in foreign economies and so wanted to buy more U.S. bondsthe dollar would appreciate which would cause aggregate demand to shift right.8.Which of the following is correct?

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