If the money supply in an economy is $300, the price level is $4, and real GDP is $1,500, what is the nominal value of output?

How does optimization in levels differ from optimization in differences? Assume that the city council has to choose one among the following three alternatives: setting up a school, setting up a hospital, and setting up a playground

The estimates of expected cost and benefit of all three projects are shown in the following table. How does the city council arrive at the optimal choice if both the techniques of optimization are implemented? Do the results vary? Project Cost ($) Benefit ($) Playground 15,000 30,000 School 20,000 50,000 Hospital 50,000 75,000

A change in monetary policy has a larger effect on aggregate demand the

a. flatter the LM curve. b. the less elastic money demand. c. more elastic money demand. d. steeper the IS curve. e. the steeper the LM curve.