In the AS/AD model, in the short run, monetary policy affects:
A. only inflation.
B. both inflation and real output.
C. only real output.
D. neither inflation nor real output.
Answer: B
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In the absence of the negative externality from each individual's contribution to road congestion, roads would not be congested (aside from congestion caused by accidents).
Answer the following statement true (T) or false (F)
Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $20
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A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.