In the figure above, the demand curve shifts rightward from D0 to D1. There are no rent controls. In the short run, the increase in demand results in
A) higher rents and a decrease in the equilibrium quantity.
B) lower rents and a decrease in the equilibrium quantity.
C) higher rents and an increase in the equilibrium quantity.
D) lower rents and an increase in the equilibrium quantity.
C
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In the steady state of Solow's exogenous growth model, an increase in total factor productivity
A) increases output per worker and increases capital per worker. B) increases output per worker and decreases capital per worker. C) decreases output per worker and increases capital per worker. D) decreases output per worker and decreases capital per worker.
The flatter is the IS curve,
A) the more effective is monetary policy. B) the less effective is monetary policy. C) the effectiveness of monetary policy does not change. D) a given change in the money supply will have a smaller effect on output.