Suppose that money supply growth increases. In the long run, this increases employment according to
a. both the long-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the long-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. the aggregate demand and aggregate supply model, but not the long-run Phillips curve
b
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The market wage rate for a car mechanic is $30 per week. Peter, who owns a garage, is in urgent need of a mechanic to head his existing employees. He is willing to hire Alex and pay $8 extra in order to make sure that Alex puts in his best efforts. If Alex accepts the job, which of the following statements will be true?
a. There is no disutility of hard work for Alex as his pay exceeds the market wage rate. b. Alex has no incentive to put in his best efforts on this job. c. Alex's disutility of extra effort in this new job is less than the utility from extra pay. d. Peter's benefit from hiring Alex will be limited as he is paying above the market wage rate.
Answer the following statement(s) true (T) or false (F)
1. National income accounting is a uniform means of measuring economic performance. 2. Economists use the quantity produced to measure the value of goods and services for GDP. 3. GDP includes the value of new goods as well as used goods. 4. For the economy as a whole, expenditures must equal income. 5. (X – M) is a spending category for the expenditure approach.
Which of the following accurately describes the minimum point of ATC?
a. P = MC and P = MR at q*
b. P = MC and P = MR at 0
c. P > MC and P < MR at q*
d. P < MC and P > MR at 0
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's total variable costs are
A. $100. B. $150. C. $300. D. $600.