In the Keynesian model, a short-run increase in investment spending will shift the aggregate
A) supply curve to the left.
B) supply curve to the right.
C) demand curve to the left.
D) demand curve to the right.
D
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The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers
When Paul maximizes his profit, the difference between marginal cost and price is A) $0. B) $40. C) $60. D) $30. E) $20.
A correct formula (dropping all minus signs) for the calculation of the elasticity of demand between point Q1, P1 and point Q2, P2 is
A. [(P2? P1)/(P2 + P1)]/[(Q2? Q1)/(Q2 + Q1)]. B. [(P2? P1)/P1]/[(Q2? Q1)/Q1]. C. [(Q2? Q1)/(Q2 + Q1)]/[(P2? P1)/(P2 + P1)]. D. [(Q2? Q1)/Q2)]/[(P2? P1)/P2].
What are the three decisions that all firms must make?
What will be an ideal response?
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank deposits are equal to
A) $1.6 million. B) $2 million. C) $4 million. D) $8 million.