Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy.
B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy.
C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy.
D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.
Question 2
Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call, which of the following would NOT be a mutually agreeable terms of trade for Sandy and Tim?
A) 1 economics report for 1 sales call
B) 1 sales call for 3 economics reports
C) 1 sales call for 4 economics reports
D) 1 economics report for 1/4 of a sales call
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