Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. If the price of capital is $25, then along isocost line AB total cost is
A. $1,200.
B. $1,500.
C. $2,000.
D. indeterminate from this information since the price of labor is not given.
Answer: B
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The money wage rate is constant when moving along
A) only the potential GDP line. B) the aggregate supply curve, the potential GDP line, and the aggregate demand curve. C) only the aggregate supply curve. D) only the aggregate supply curve and the potential GDP line. E) neither the aggregate supply curve nor the potential GDP line.
Suppose the Fed changes the interest rate in an attempt to raise planned investment. But in spite of this, planned investment remains unchanged. The most likely explanation is that
A) we have moved downward along an unchanged rate-of-return line. B) we have moved upward along an unchanged rate-of-return line. C) the rate-of-return line has shifted to the left. D) the rate-of-return line has shifted to the right.
A competitive price-searcher market is characterized by firms
a. being able to choose their price and by low barriers preventing firms from entering or leaving the market. b. being able to choose their price and by high barriers preventing firms from entering or leaving the market. c. having to accept the market price for their product and by high barriers preventing firms from entering or leaving the market. d. having to accept the market price for their product and by low barriers preventing firms from entering or leaving the market.
Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language. This is an example of
What will be an ideal response?