In the IS-LM model, if interest rates fall while output falls the
a. money supply must have fallen.
b. price level must have fallen.
c. money supply must have risen.
d. level of government spending must have risen.
e. none of the above.
E
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What determines the supply of a nonrenewable natural resource?
What will be an ideal response?
Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply, unless they reflect permanent reductions in the supply of those inputs?
In the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels
a. less than total cost b. less than total cost but greater than variable cost c. less than total cost but greater than fixed cost d. greater than fixed cost e. less than variable cost
In what ways have financial innovations affected the demand for money?
What will be an ideal response?