Refer to the graph above. Assume that the economy is in a recession with a price level of P 1 and output level Q 1. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
a. P1 and Q1
b. P1 and Q3
c. P2 and Q2
d. P2 and Q4
Answer: c. P2 and Q2
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Let C = 40 + 0.8y and I = 10. Autonomous consumption is
A) 10. B) 32. C) 40. D) 50.
Using the figure above, which of the following statements are correct?
i. When 3 haircuts are produced, the firm's ATC is $10. ii. If the firm charges each customer the same price for a haircut, the price of a haircut is $14. iii. The firm is NOT a perfect competitor. A) i only B) ii only C) i and ii D) i and iii E) i, ii, and iii
A labor union is an organization representing workers in negotiations with employers over wages, benefits, and working conditions
a. True b. False Indicate whether the statement is true or false
If a determinant of demand other than price changes, the demand curve shifts
a. True b. False Indicate whether the statement is true or false