Refer to Table 9-11. With trade, what is the total gain in hat production?

Alex receives a raise at work and continues to work the same number of hours each week. What is the most likely way that his demand for $3 T-shirts, which he considers an inferior good, change?

(A) It will increase. (B) It will stay the same. (C) It will fluctuate erratically. (D) It will decrease.

What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand?

A. Changes in the money supply B. Slope of the aggregate supply curve C. Rate of change of interest rate D. Total money supply in the economy