Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is

To calculate the price elasticity of supply, we divide

A) rise by the run. B) the average price by the average quantity supplied. C) the percentage change in price by the percentage change in quantity supplied. D) the percentage change in quantity supplied by the percentage change in price.

In the short run, a permanent increase in the domestic money supply

A) has stronger effects on the exchange rate and output than an equal temporary increase. B) has stronger effects only on the exchange rate but not on output than an equal temporary increase. C) has weaker effects on the exchange rate and output than an equal temporary increase. D) has stronger effects on output, but lower effect the exchange rate than an equal temporary increase. E) has weaker effects only on the exchange rate than an equal temporary increase.