Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed cost of $25,000, average variable cost for 1,000 service calls is $45, and marginal revenue is $75. Juan's makes 1,000 service calls a month

Maximum employment and moderate long-term interest rates are best achieved with

A) price stability. B) high and variable inflation rates. C) high real interest rates. D) high and stable inflation rates. E) high short-term interest rates.

Which of the following statements is (are) correct? According to real business cycle theory,

a. the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus, stable prices. b. there is some role for activist monetary stabilization policy of a Keynesian type. c. changes in aggregate demand cannot impact output. d. Both a and b e. Both a and c