The above table depicts prices, quantities, and marginal costs faced by the campus bookstore. At the profit-maximizing level of output, what is the total revenue earned by the store?
A) $12
B) $5
C) $15
D) $6
C
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With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would
have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater
Which of the following would cause an increase in the price of gasoline and an expansion in the equilibrium quantity?
a. an increase in the price of crude oil, a key ingredient required for the production of gasoline b. the introduction of a miracle carburetor that substantially improves the gas mileage of automobiles c. a recession that substantially reduces the income of households d. an increase in the popularity and use of Sport Utility Vehicles that consume a lot of gasoline per mile driven
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. M2 money supply to remain the same. b. M2 money supply to fall. c. M2 money multiplier to rise. d. Monetary base to fall.
Based on the diagram, if potential output equals 8,000 and the real interest rate is 2 percent, then there is ________ gap and the Fed must ________ the real interest rate so that output will equal potential output. 
A. a recessionary; raise B. no output; not change C. an expansionary; reduce D. an expansionary; raise