The producer surplus
A. the area under the demand curve from the origin to the quantity purchased.
B. the area above the supply curve but below the price line from the origin to the quantity purchased.
C. the area under the demand curve but above the price line from the origin to the quantity purchased.
D. the area under the supply curve from the origin to the quantity produced.
Answer: B
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Under the rational expectations hypothesis, which of the following is the most likely short-run effect of a move to a more expansionary monetary policy?
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