Write the mathematical expression that summarizes the three alternative explanations for the upward slope of the short run aggregate supply curve
Quantity of output supplied = natural rate of output + a(actual price level - expected price level)
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Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28 . For the theatre to maximize total revenue, it should
a. Charge the same price for both shows, holding other things constant. b. Charge a higher price for the afternoon shows and lower price for the evening shows, holding other things constant c. Charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant d. Need more information
The quantity theory of money assumes that the velocity of money:
a. is constant. b. will rise if the money supply rises and fall if the money supply falls. c. will rise if the money supply rises, but it will not change if the money supply falls. d. will fall if the money supply rises, and it will rise if the money supply falls. e. will fall if the money supply rises, but it will not change if the money supply falls.