If the quantity of money increases, the
A) price level rises and the AD curve does not shift.
B) AD curve shifts leftward and aggregate demand decreases.
C) AD curve does not shift and there is a movement upward along the curve.
D) AD curve shifts rightward and aggregate demand increases.
D
You might also like to view...
Most economists would consider it sensible for the federal government to ________ its current operating and capital expenditure budgets and then ________
A) consolidate, never borrow to fund it B) consolidate, borrow what is necessary to fund it C) separate, borrow what is necessary to fund the current operating budget. D) separate, borrow what is necessary to fund the capital expenditure budget.
If a firm’s production creates detrimental externalities, then in a competitive market,
A. the firm will produce at an inefficiently high level. B. the firm will produce at an inefficiently low level. C. the firm will produce until marginal social cost equals marginal benefits. D. the firm will produce until marginal benefits exceed marginal social cost.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $100. B. $1,400. C. $1,000. D. $400.
If resources are combined efficiently in production, then the society
A) is experiencing economic growth. B) is producing at a point outside the production possibility frontier. C) is producing at the most-desirable point on the production possibility frontier. D) is producing at a point on the production possibility frontier but not necessarily at themost-desirable point.