The following diagram shows the market demand schedule for a good. When the price of the good is P, the shaded area represents:

If a firm is producing no output in the short run, then its total costs are zero

Indicate whether the statement is true or false

If the Fed buys $25 billion of U.S. bonds in the open market and the reserve requirement is 20 percent, M1 will eventually

A. Decrease by $25 billion. B. Increase by $125 billion. C. Increase by $25 billion. D. Decrease by $125 billion.