In the above figure, assume the economy starts out in equilibrium at point d. If the Fed increases the money supply so that the new aggregate demand curve is AD3, then the long-run equilibrium will be at point

A) a.
B) b.
C) c.
D) i.


A

Economics

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The difference between the investment demand curve and the investment schedule is that the former shows a(n)

A. direct relationship between investment and interest rate, while the latter shows no correlation between investment and income. B. inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate. C. direct relationship between investment and income, while the latter shows no correlation between investment and interest rate. D. inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income.

Economics

Total fixed cost is the sum of all

A) costs of the firm's fixed factors of production. B) costs associated with the production of goods. C) costs that rise as output increases. D) the marginal costs of the different factors of production.

Economics

Market failure occurs when a market fails to maximize net social welfare

a. True b. False Indicate whether the statement is true or false

Economics

For any given growth rate of aggregate supply, a faster growth rate of aggregate demand will lead to more inflation and faster growth of real output.

Answer the following statement true (T) or false (F)

Economics