Which combination of signals is indicative that Fed policy is restrictive and that a shift to a more expansionary policy is in order?
a. Commodity prices are falling, and the dollar is appreciating.
b. Commodity prices are rising, and the dollar is appreciating.
c. Commodity prices are rising, and the dollar is depreciating.
d. Commodity prices are falling, and the dollar is depreciating.
A
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Explain how the AD curve can be derived from the IS-MP model
What will be an ideal response?
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 When the firm uses 9 employee-hours per day, its total revenue each day is:
A. $160. B. $18. C. $120. D. $240.