Refer to the figure above. What is the initial equilibrium price of the good?

If marginal costs for a firm are constant would the average total cost curve still have be u-shaped? Explain

What will be an ideal response?

If both money demand and commodity demand are unstable, as many activists believe, which type of policy target(s) would most likely lead to a stable economy (assuming supply-side shocks are likely to occur)?

A) money supply target B) real GDP target C) interest rate target D) nominal GDP