In the above figure, the economy is at point A. Then the price level rises to 110 while the money wage rate remains constant. Firms will be willing to supply output equal to
A) less than $16.0 trillion.
B) $16.0 trillion.
C) more than $16.0 trillion.
D) Without more information, it is impossible to determine which of the above answers is correct.
C
You might also like to view...
When an industry's demand curve for labor is derived from the individual firms' demand curves, what complication must be taken into account?
a. Adjustments in the amount of capital employed. b. The factor-price effect. c. Changes in the price of the firms' product. d. Monopsony power.
The credit spread refers to ________
A) the extent to which financial instruments are distributed among households at different income levels in a given society B) the difference between the London Inter-Bank Offered Rate (LIBOR) and the fed funds rate C) the price elasticity of household debt D) the interest-rate differential between risky bonds and U.S. Treasury bonds
The federal gasoline tax is assessed on a per-gallon basis and the proceeds are used for highway maintenance and improvements. This tax is consistent with the:
A. single-tax theory of taxation. B. pay-as-you-go ("Paygo") theory of taxation. C. benefits-received principle of taxation. D. ability-to-pay principle of taxation.
The Five Forces Model illustrates the forces that determine the level of product differentiation and price competition in an industry.
Answer the following statement true (T) or false (F)