If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit

Figure 4.4 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from

A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.

The equation of exchange is an ________ while the quantity theory of money is a theory that ________

A) accounting identity; assumes the money supply is constant B) accounting identity; assumes velocity is held constant C) accounting theory; assumes the price level is constant D) accounting theory; economists use to explain changes in real GDP