If marginal revenue exceeds marginal cost, the firm should increase output to maximize profit

Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that a contractionary monetary policy to lower inflation after a supply shock, like that pursued by Volcker in 1979, would result in a movement from

A) C to D to A. B) A to C. C) A to D to C. D) A to B. E) C to A.

If something is to serve as money it must be a store of value. This means that it must

A) be divisible. B) be the standard by which all goods are compared in setting prices. C) hold its purchasing power over time. D) be liquid.