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increase aggregate demand, increase prices, and decrease real GDP.increase short-run aggregate supply, decrease in prices, and decrease in real GDP.increase short-run aggregate supply, decrease prices, and increase real GDP.Points Received:5 of 5Comments:Question 11.Question :In a fixed exchange rate system:Student Answer:market forces and the country's stock of gold determine its exchange rate.a central bank affects the value of a currency by changing its foreign exchange reserves.
market forces play a role in determining the fixed value of a currency.the International Monetary Fund determines exchange rates.Points Received:5 of 5Comments:Question 12.Question :When the price of a good falls, there will beStudent Answer:an outward shift in the good's demand curve.both an outward shift in the good's demand curve and a movement along thegood's demand curve.a movement along the good's demand curve.no change in quantity demanded.Points Received:5 of 5Comments:Question 13.Question :If the price of cotton used in making blue jeans increases, which of the following will occur?Student Answer:There will be a movement along an unchanged supply curve for jeans.The supply curve for jeans will shift rightward.The supply curve for jeans will shift leftward.There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.Points Received:5 of 5Comments:Question 14.Question :When two goods are substitutes:
Student Answer:the demands for both goods will be inelastic.cross price elasticity of demand will be 0.cross price elasticity of demand will be negative.cross price elasticity of demand will be positive.Points Received:5 of 5Comments:Question 15.Question :Which of the following is an example of the free-rider problem?Student Answer:A neighbor who refuses to help pay for a street light that is intended to help reduce crimeA student who refuses to buy a college catalogA law enforcement officer who receives a uniform from the police department