The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change
a. in the price level and output.
b. in the price level, but not output.
c. in output, but not the price level.
d. in neither the price level nor output.
b
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A firm operating in a purely competitive labor market has the following marginal revenue product schedule.WorkersMRP1$24222320418516614712If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A. 5 workers B. 4 workers C. 3 workers D. 2 workers
Opportunity cost is usually measured in terms of money
Indicate whether the statement is true or false
How might governments achieve an efficient provision of education?
What will be an ideal response?
Suppose the velocity of money is not fixed, but stable at about 4% growth per year
How could the quantity theory of money be modified to include a stable growth rate of the velocity of money? In this modified version with velocity growing at about 4% per year, what would the growth rate of the other variables need to be to cause inflation?