Suppose that the price level does not change while real GDP decreases. As a result,
A) the quantity of money demanded decreases and there is a movement downward along the demand for money curve.
B) the supply of money curve shifts leftward.
C) the demand for money increases and the demand for money curve shifts rightward.
D) the demand for money decreases so that households and firms hold smaller amounts of money.
E) the supply of money curve shifts rightward.
D
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The number of firms in a monopolistically competitive industry means that
A) firms will collude. B) existing firms in the industry will make sure new firms do not enter. C) firms will not cooperate to set a pure monopoly price. D) firms will try to set a common price.
Refer to the diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve:
A. A
B. B
C. C
D. D