If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
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Refer to Scenario 12.1 At the assumed annual inflation rate of 5 percent, approximately how much will the $6.00 pack of cigarettes cost in 30 years, when Jennifer reaches the retirement age of 60?
A) $16 B) $21 C) $33 D) $47
In the open-economy macroeconomic model, at the equilibrium real interest rate, the amount that people (including government) want to save exactly balances desired domestic investment
a. True b. False Indicate whether the statement is true or false
A package delivery service uses vans and employees to deliver the maximum number of packages given a fixed budget. The last van added 600 packages to total output, while the last employee added 500 packages. If vans cost $400 per week and employees earn $300 per week, the firm
A. could deliver more packages with the same budget by using more employees and fewer vans. B. could deliver more packages with the same budget by using more vans and fewer employees. C. should use more vans and fewer employees because the last dollar spent on vans added more to total output than the last dollar spent on employees. D. is delivering the maximum number of packages given the fixed budget. E. both b and c
According to the above table, the marginal factor cost of the eighth worker is
A. $168.00. B. $27.00. C. $48.00. D. $216.00.