Contractionary monetary policy causes
A) aggregate demand to fall and the price level to rise.
B) aggregate demand to rise and the price level to rise.
C) aggregate demand to rise and the price level to fall.
D) aggregate demand to fall and the price level to fall.
Question 2
Suppose your expenses for this term are as follows:
tuition: 5,000, room and board: 3,000, books and other educational supplies: 500. Further, during the term, you can only work part-time and earn 4,000 instead of your full-time salary of 10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A) 5,500 B) 8,500 C) 11,500 D) 14,500
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