When the production possibilities curve is a straight line, the opportunity cost of producing more of one good must be equal to the opportunity costs of producing more of the other good

Describe the channels by which monetary policy ripples through the economy and explain how each channel operates

What will be an ideal response?

The major difference between short-term macroeconomic theory and long-run macroeconomic theory is:

a. Short-term theory focuses mainly on demand-oriented factors, and long-run theory focuses mainly on supply-oriented factors. b. Short-term theory focuses mainly on supply-oriented factors, and long-run theory focuses mainly on demand-oriented factors. c. Short-term theory focuses mainly on financial markets, and long-run theory focuses mainly on the real goods market and the foreign exchange market. d. Short-term focuses mainly on the real goods market and foreign exchange market, and long-run theory focuses mainly on the financial markets. e. Short-term theory focuses mainly on the role government has in an economy, and long-run theory focuses mainly on the role financial and real markets have on the real goods market.