Which of the following is true?
a. Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
b. Inflation and unemployment rates cannot both increase or both decrease in the short run in response to changes in aggregate demand.
c. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
d. All of the above are true.
b
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Refer to the above figure. When the price in the market is $4, economic profits will equal
A) $100. B) $200. C) $300. D) $400.
Market consumer surplus at any price
a. is the area above the market supply curve and below the market demand curve b. is the area below the market supply curve and above the market demand curve c. is the area under the demand curve and above the market price d. is that price multiplied by the number of units demanded e. is the number of units demanded multiplied by the cost of producing them.
If a union achieves above-equilibrium wages for its membership, the wages of nonunion workers will generally suffer.
Answer the following statement true (T) or false (F)
Which of the following would be considered part of wealth?
A. Wages and salaries B. Rental payments C. Profits from a corporation D. Corporate stock holdings