5) The Fed increases the nominal money supply so M=144,000. The price level is constant at 120. Find the equilibrium with the increase in the nominal money supply. Answer : The real interest rate is [A]% and the output level is [B] in the new equilibrium. Because the output level is the same as the full-employment output, this equilibrium is a [C] (general, short-run, long-run) equilibrium which is stable.

Match each definition in column 1 with a vocabulary word from column 2." some of the entries in column 2 do not apply costs which do not change with the level of output costs which change with the level of output the change in total costs resulting from an increase in output by one unit function showing the quantities of a particular good demanded at a range of price when the quantity supplied of a good is greater than the quantity demanded when the quantity demanded for a particular good is greater than the quantity supplied the price and quantity determined in a market when the supply equals the demand when revenue exceeds costs when costs exceeds revenue output where revenue = costs