You are the manager of a monopoly that faces a demand curve described by P = 85 ? 5Q. Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is:

The complete wage and price flexibility of the real business cycle framework implies that ________

A) the velocity of money is a constant B) the velocity of money times the money supply is equal to the nominal value of transactions over a given period of time C) aggregate output always equals potential output D) sustained economic contractions, like the Great Depression, cannot occur in real, historical time

Which of the following best characterizes the relationship between aggregate demand and aggregate consumption expenditures under the aggregate expenditure model?

a. loosely dependent b. essentially equal c. completely irrelevant d. often misunderstood