Refer to the graph below. Assume the economy is at the initial position of B2. It is possible for the government to reduce the unemployment rate and move the economy to C2 if:
A. Expected inflation remains at 4%
B. Expected inflation becomes 8%
C. Actual inflation remains at 4%
D. Actual inflation is at 12%
A. Expected inflation remains at 4%
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Why is it true that under monopolistic competition the price is above marginal revenue while under pure competition price is equal to marginal revenue?
What will be an ideal response?
If the BLS counted persons that are on active military service in the totals for employment, the labor force, and the working-age population, this would
A) decrease the measured unemployment rate. B) decrease the measured labor force participation rate. C) decrease the number of persons in the labor force. D) decrease the number of persons in the working-age population.
An increase in the price of a key input in production, like oil, increases aggregate supply.
Answer the following statement true (T) or false (F)
Assume toys are produced using only labor and wood. Which of the following best describes the cost of producing toys?
a. The number of dollars that the laborer spends to purchase the wood. b. The amounts of labor and wood used in the production process. c. The alternative uses that could be found for the labor and wood. d. The monetary value of the labor and wood used.