Suppose Woody's Cabinetmaking calculates the following information for each cabinet produced in a given month: P = $300; Q = 100; AFC = $10; AVC = $140 . Woody's total profit for that month is

According to the monetarist theory, an increase in government spending would have

a. only weak effects on both output and the price level. b. a weak effect on output with a strong effect on the price level. c. a weak effect on the price level but a strong output effect. d. stronger effects on output if financed with increases in the money supply. e. both a and d.

If the multiplier effect did not exist, the aggregate demand curve would:

A. be horizontal. B. be flatter. C. be steeper. D. not exist.