Suppose Fred's marginal utility of an extra dollar of income is 56, and Sally's is 34 . If a dollar is taken from
a. Sally and given to Fred, the economy's total utility will rise by 22 units
b. Fred and given to Sally, the economy's total utility will rise by 22 units
c. Sally and given to Fred, the economy's total utility will rise by 34 units
d. Sally and given to Fred, the economy's total utility will rise by 56 units
e. Fred and given to Sally, the economy's total utility will rise by 34 units
A
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A decrease in the price level will shift the money demand curve to the ________, causing the nominal interest rate to ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
Which of these does not hold true if an economy is simultaneously in long-run and short-run equilibrium? a. The actual price level equals the expected price level
b. Aggregate quantity supplied equals potential output. c. Aggregate quantity demanded equals potential output. d. Aggregate quantity supplied equals aggregate quantity demanded. e. Aggregate demand curve is horizontal at the potential output level.