Use the “Economic Adjustments” Figure 31-4. Assume that the economy is at point c. An increase in the money supply would cause:

a. a shift of the SRAS1 curve to SRAS2.
b. a shift of the SRAS2 curve to SRAS1.
c. a shift of the AD1 curve to AD2.
d. a shift of the AD2 curve to AD1.
e. a shift of the AD1 curve to AD2 and a shift of the SRAS2 curve to SRAS1.

How can firms use marginal analysis to determine the price of a product? a) profit maximization can occur when the marginal cost exceeds the marginal revenue. b) the total cost of production can determine the individual unit price of a product. c) marginal analysis can be used to determine at what price profit maximization occurs. d) firms can calculate the marginal cost of a product and set the price lower than the cost.

Assume you wanted to save 2000 to buy a used car 18 months from now. how much money do you need to save every week to accomplish your goal?

And intervening opportunity is an example of