The quantity equation implies that any decrease in the money supply has to lead directly to:
A. a decrease in P.
B. an increase in Y.
C. a decrease in Y.
D. an increase in P.
Answer: A
Economics
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Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should
A) increase output. B) increase price. C) remain at the same position. D) shut down.
Economics
The price of natural gas fell and the quantity sold also fell. Everything else being equal, it is consistent that
A. the price of oil fell. B. natural gas workers received large wage increases. C. more efficient gas drilling equipment was installed. D. consumer incomes rose. E. the supply of natural gas fell.
Economics