Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

question 145

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.

-Refer to Figure 32-4.Suppose that U.S.firms desire to purchase more equipment and build more factories and stores in the U.S.The effects of this are illustrated by

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

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Definitions:

Revenue Analysis

The examination of income generated from sales, investments, or business operations to understand the financial health and profitability of a business.

Market Share Analysis

An assessment of a company's sales in relation to the total sales in its industry, indicating competitiveness and market dominance.

Profitability Analysis

An assessment method to determine the ability of a business to generate earnings compared to its expenses and other relevant costs.

Market-Entry Strategies

Plans developed by businesses to begin selling products or services in a new market, addressing challenges like competition and legal regulations.