Q 2) a-)Why is short-run average total cost (SATC) at a minimum at the output, at...

Q 2) a-)Why is short-run average total cost (SATC) at a minimum at the output, at which the short-run marginal cost (SMC) curve and short-run average total cost (SATC) curve cross? Explain and draw the figure.

b-) What is the effect of higher interest rates on the quantity of real money demanded? Explain and draw the figure.

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Expert Solution

Rahul Sunny answered 3 months ago

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