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Suppose the economy initially produces 3,300 bushels of wheat and 1,500 garments of clothing, which is represented by point A. Society then decides it wants to produce 1,000 more garments of clothing, so the economy moves from point A to point B.
Illustrate what is the opportunity cost of 1,000 garments of clothing in the range between points A and B?
The interest rate effect of the price level is reflected in: Changes in aggregate demand can be caused by changes in: The classical model of the price level is associated with
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Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price.
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