Using the information contained in Figure 4-7 above, the initial equilibrium Y is 3500. If there is 500 of new fiscal stimulus and a constant money supply, Y will increase to ________ and the interest rate will ________
A) 4000; remain constant
B) 4000; rise to 10%
C) 4500; rise to 12.5%
D) 5500; remain constant
C
Economics
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In Problem 5, in the long run, what is the market price and the quantity of paper produced? What is the number of firms in the market?
What will be an ideal response?
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