What was suggested by Keynes to move the economy out of a depressed state?
a. The invisible hand
b. The price mechanism
c. Monetary and fiscal policy
d. Zero government intervention
c
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A price searcher faces the following demand curve: At $9, $8, $7, and $6, the quantity demanded is 10, 20, 30, and 40 units, respectively. If the firm's marginal cost is $70 at any level of output, it would maximize net revenues by
A) producing 10 units and charging $9. B) producing 20 units and charging $8. C) producing 30 units and charging $7. D) producing 40 units and charging $6. E) charging $70 plus markup.
One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise. B) people buy more foreign goods when the domestic price level rises. C) the amount of money in the economy increases when the price level rises. D) firms supply less when prices rise.