Figure 35-6 Use the Graph Below to Answer the Following Questions

question 122

Multiple Choice

Figure 35-6
Use the graph below to answer the following questions.
-Refer to Figure 35-6.If the economy starts at C and the money supply growth rate increases,then in the short run the economy moves to

• A)B.
• B)D.
• C)F.
• D)None of the above is consistent with an increase in the money supply growth rate.

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Definitions:

Elastic

describes a situation where the quantity demanded or supplied changes significantly in response to price changes.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are deducted.

Price Lowered

A reduction in the cost of goods or services.

Total Revenue

The total amount of money a firm receives from sales of its products or services before any expenses are subtracted.