Refer to Figure 17-1. Suppose that the economy is currently at point A. If the Federal Reserve engaged in expansionary monetary policy, where would the economy end up in the short run?

If a production function has the property of diminishing marginal product, then doubling:

A. all of the inputs will less than double the output. B. all of the inputs will double the output. C. all of the inputs will more than double the output. D. one of the inputs will reduce its marginal product.

Modigliani's consumption function differs from both Friedman's and Keynes' function in which of the following?

A) It is based on forward looking expectations. B) It is based on disposable income received over time. C) It is based on the value of assets accumulated over time. D) It is based on disposable income or permanent income.