What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy
b
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A revaluation is an increase in the official value of a currency.
Answer the following statement true (T) or false (F)
Suppose at the current level of labor used, MRP = $10 and MFC = $10. To maximize profits, the firm should
A. maintain the current level of labor. B. shut down. C. reduce the level of labor. D. hire more labor.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Is the demand for a particular brand of car, like a Chevrolet, likely to be more or less price-elastic than the demand for all cars?