Refer to the figure above. What is the equilibrium employment and wage rate after the demand curve shifts to LD2?
A) 20 units of labor and $35 B) 5 units of labor and $15
C) 15 units of labor and $20 D) 10 units of labor and $10
C
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Based on the transactions in the above table, what is the change in the U.S. balance of merchandise trade?
A) $11,000 B) $29,700 C) -$30,000 D) -$31,000
Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6 . If the firm produces Q = 60 in the short run, it
a. is minimizing losses b. makes a total loss of $60 c. should produce more output d. is making a mistake and should shut down e. is maximizing total profit
Answer the following questions true (T) or false (F)
1. The long-run aggregate supply curve is vertical. 2. When potential GDP increases, long-run aggregate supply also increases. 3. A supply shock causes the long-run aggregate supply curve to shift left, decreasing the price level.
According to the rational inattention theory, during the periods between informational updates
A. firms always change product prices more than the inflation rate. B. firms fail to fully adjust product prices. C. firms change the wages of their employees but keep product prices unchanged. D. firms fully adjust product prices.