A decrease in aggregate demand in the Classical model leads to
A) lower prices and lower output.
B) lower prices and higher output.
C) lower prices and unchanged output.
D) unchanged prices and output.
C
Economics
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In the above figure, if the market price rises from $100 to $125 per ton of wheat, then producer surplus
A) decreases. B) does not change. C) increases. D) might increase, decrease, or not change depending on how the demand curve for wheat shifts.
Economics
The Federal Reserve cannot target both the money supply and the interest rate because it does not control
A) bank reserves. B) money demand. C) the discount rate. D) open market operations.
Economics