Consider the budget line in the above figure. If the consumer's income is $240, then the price of a movie is

On the graph above, an example of a negative demand shock is the movement from point ________ to point ________

A) F; G B) H; I C) F; H D) H; F E) none of the above

Classical economists and Keynesian economists respect each other but hold very different views about how to read the quantity theory of money. According to the classical view,

a. velocity is constant (Keynesians agree), which means changes in price will cause changes in price or quantity (Keynesians disagree) b. quantity is constant (Keynesians agree), which means changes in the money supply could cause either changes in velocity or changes in prices (Keynesians disagree) c. velocity and price are constant (Keynesians disagree) so that changes in the money supply cause changes in quantity (Keynesians disagree) d. velocity and quantity are constant (Keynesians disagree) so that changes in the money supply only cause changes in prices (Keynesian disagree) e. velocity is constant while quantity is variable (Keynesians disagree) so that changes in the money supply change both price and quantity (Keynesians disagree)