Figure 32-3 Refer to the Following Diagram of the Open-Economy Macroeconomic Model

question 114

Multiple Choice

Figure 32-3
Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow.
​
Graph (a)
Graph (b) Graph (c) ​
-Refer to Figure 32-3. Suppose that U.S. firms desire to purchase more equipment and build more factories and stores in the United States. The effects of this are illustrated by

• A)shifting the demand curve in panel a to the right and the demand curve in graph (c) to the left.
• B)shifting the demand curve in panel a to the right and the supply curve in graph (c) to the left.
• C)shifting the supply curve in panel a to the right and the demand curve in graph (c) to the left.
• D)shifting the supply curve in panel a to the right and the supply curve in graph (c) to the right.

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Definitions:

Generic Equivalents

Drugs that are chemically identical to a brand-name drug but sold under a generic name, usually at a lower cost.

Pharmaceutical Industry

The sector of the healthcare industry that is involved in the development, production, and marketing of medications, where it plays a crucial role in the development of new drugs and therapies.

Patent Expires

The point at which a patent's protection ends, allowing others to make, use, or sell the invention without infringement.

Market Equilibrium

A condition where supply equals demand, and the market price becomes stable.