An implication of the long-run aggregate supply curve is that continuous increases in the money supply will result in continuous:
A. increases in price level.
B. decreases in output and price level.
C. decreases in output.
D. increases in output and price level.
Answer: A
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Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the efficient quantity?
A. 34,286 B. 131,429 C. 1,200 D. 90,000
What insights about international trade came from Adam Smith and David Ricardo?
What will be an ideal response?
In the diagram, a shift from AS 3 to AS 2 might be caused by an increase in:
A. business taxes and government regulation.
B. the prices of imported resources.
C. the prices of domestic resources.
D. productivity.
Hugo consumes a certain combination of pizzas and cola. However, he can afford more of cola, given his budget constraint. Graphically, this would imply that his choice lies: a. on the budget constraint
b. within the budget constraint. c. outside the budget constraint. d. on one of the axes.