With an upward-sloping aggregate supply curve, tight monetary policy:
A. Reduces aggregate demand and decreases inflationary pressures.
B. Reduces aggregate demand and increases inflationary pressures.
C. Raises aggregate demand and increases inflationary pressures.
D. Raises aggregate demand and decreases inflationary pressures.
A. Reduces aggregate demand and decreases inflationary pressures.
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According to this Application, if you earn a salary of $40,000 in the first year and all prices triple in the next 10 years, what will your nominal annual salary be in 10 years?
A) $20,000 B) $60,000 C) $120,000 D) $180,000
Consider the following short-run production function: q = 5L2 - 1/3 L3. At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
What will be an ideal response?