Using the aggregate supply drawn under the monetarist view, what should happen to the equilibrium price level and quantity of output if the Fed buys bonds?
A. Equilibrium price level and equilibrium output should both increase.
B. Equilibrium price level should increase, and equilibrium output should decrease.
C. Equilibrium price level should decrease, and equilibrium output should increase.
D. Equilibrium price level should increase and equilibrium output should stay constant.
D. Equilibrium price level should increase and equilibrium output should stay constant.
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What will be an ideal response?
Refer to the graph shown. An effective price floor at Pf causes consumer surplus to:
A. change from areas A + B + E to areas A + B + C. B. fall from areas C + D + F to area D. C. fall from areas A + B + E to area A. D. change from areas C + D + F to areas B + C + D.
An increase in the supply of corn will lower the total revenue from corn if
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Is a Nash equilibrium stable? Explain
What will be an ideal response?