An economist says, "Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:

Technological advances lead to lower demand, which leads to lower prices.

Technological advances lead to greater supply, which leads to lower prices.

Technological advances lead to greater quantity supplied, which leads to lower prices.

Technological advances lead to lower taxes, which lead to greater supply, which leads to lower prices.

Technological advances lead to higher taxes, which lead to fewer subsidies, which lead to greater supply, which leads to lower prices.

Along the long-run aggregate supply curve, the price level ____ with decreases in aggregate demand.

does not change

increases

decreases

may increase, decrease, or remain unchanged

Other things being equal, which of the following will increase aggregate demand?

exports rising and imports falling

exports falling and imports rising

exports falling faster than imports

exports rising faster than imports

What would be the statistical discrepancy for a current account balance of -$85 billion and a financial account balance of $80 billion?

-$165 billion

-$5 billion

$5 billion

$165 billion

Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, the price of U.S. goods to Japanese importers will:

rise.

fall.

stay the same.

change in an indeterminate direction.

Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to:

decrease the equilibrium price of frozen yogurt.

increase the equilibrium quantity of frozen yogurt.

increase the supply of frozen yogurt.

decrease the demand for frozen yogurt