To maximize profit, a monopsonist hires workers up to the point at which marginal factor cost (MFC) equals marginal revenue product (MRP)
a. True
b. False
Indicate whether the statement is true or false
True
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The level of real GDP in the long run is
A) potential GDP. B) determined solely by aggregate demand. C) affected by changes in the price level. D) the same as the level of nominal GDP in the long run.
A rise in U.S. real GDP would cause
a. leftward shifts of the demand curves for foreign currencies b. rightward shifts of the demand curves for foreign currencies c. rightward movements along the demand curves for foreign currencies d. no change in the demand curves for foreign currencies e. initial rightward movements along the demand curves for foreign currencies, followed by leftward shifts of those curves.
In the graph shown above, equilibrium price is _______.
A. $25
B. $30
C. $35
D. $40
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.