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Author Question: Models that focus on factors other than changes in the money supply to explain fluctuations in real ... (Read 41 times)

debasdf

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on: Jun 29, 2018
Models that focus on factors other than changes in the money supply to explain fluctuations in real GDP are called
 
  A) rational expectations models. B) real business cycle models.
  C) nonmonetary business cycle models. D) short-run macroeconomic models.

Question 2

What is the relationship between total variable cost and marginal cost? Explain.
 
  What will be an ideal response?


fdliggud

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Marginal cost is the slope of the total variable cost curve. This is true because the slope of the total variable cost curve is the change in total variable cost divided by the change in output. By definition, this is equal to marginal cost.


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