The long-run aggregate supply curve is vertical at $16 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at $17 trillion. We know that
A) the economy is producing below full employment in the short run, and will adjust by hiring more workers, thus decreasing unemployment.
B) the price level is too high. The long-run equilibrium will occur with a lower price level.
C) adjustments will occur so that the long-run aggregate supply equals $17 trillion.
D) adjustments will occur so that the short-run aggregate supply eventually intersects the aggregate demand curve at $16 trillion.
D
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Refer to Figure 11-3. Technological change is shown in the figure above by the movement from
A) B to E. B) B to A. C) B to C. D) B to D.
Screening and signaling in the labor market are inefficient
A) unless college costs are relatively low. B) unless they result in a better job match. C) because the benefits are spread out over many firms. D) because they raise the wage paid to all workers.
Time is primarily a __________ that can be measured in units
a. Value b. Goal c. Resource d. Decision device
Myron worked at a factory where he earned $20,000 per year. One day, he quit his job and opened a bumper sticker business. After one year, his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses. If he received no salary from the new business, what is his economic profit?
a. $10,000 b. $30,000 c. $60,000 d. $20,000 e. $50,000