How does an increase in real GDP affect the demand for money curve?
What will be an ideal response?
An increase in real GDP increases the demand for money and shifts the demand curve rightward.
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 What price will Campus Books charge if it must charge a single price to all of its customers?
A. $36 B. $24 C. $10 D. $18
The calculation of real GDP allows us to
A) separate consumption and investment spending. B) adjust for underground economic activity. C) adjust for the change in the quality of output over time. D) compare national output across periods of time.
A tax in an efficient market:
A. increases efficiency. B. decreases total surplus. C. maximizes total surplus. D. often fails to generate revenue.
Why is there a free-rider problem with public goods?
Please provide the best answer for the statement.