Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. If there is a decrease in imports, the Fed should ________.
A. increase the money supply
B. increase money demand
C. decrease money demand
D. decrease the money supply
Answer: D
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A price-discriminating firm charges the highest price to
A) the group with the least elastic demand. B) the group with demand that is unit elastic. C) the group with the largest demand. D) the group with the most elastic demand.
If velocity remains relatively constant, changes in the money supply can have a predictable effect on nominal GDP
a. True b. False Indicate whether the statement is true or false
A movement upward and to the left along a given demand curve is called a decrease in demand
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. Suppose demand is D2 and then increases to D3. Economic rent after the change is
A. zero. B. area CIGO. C. area BJC. D. area CIHF.