The reason long run market supply curves are shallower than short run market supply curves is because individual firm supply curves are shallower in the long run than in the short run.

Since the early 1990s, the Fed has conducted monetary policy by setting a target for the

A) level of borrowed reserves. B) monetary base. C) federal funds rate. D) inflation rate.

Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If A rises by 10 percent, and K and N are unchanged, by how much does Y increase?

A) 5% B) 10% C) 15% D) 20%