Horatio can produce either a combination of 15 bird houses and 25 wind chimes or a combination of 30 bird houses and 15 wind chimes
If he now produces 30 bird houses and 15 wind chimes, what is the opportunity cost of producing an additional 10 wind chimes?
A) 2 bird houses B) 15 bird houses C) 30 bird houses D) 45 bird houses
B
Economics
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In the Keynesian model with a fixed price level and a fixed money wage, an increase in the money supply will cause
a. output to fall and interest rates to fall. b. output to remain unchanged. c. output to rise and the price level to fall. d. output to rise and interest rates to fall.
Economics
The Keynesian view of the world is that the
a. self-correcting mechanism is unreliable. b. benefits of fighting unemployment are high and the costs are low. c. short-run Phillips curve is relatively flat. d. All of the above are correct.
Economics