Stagflation is characterized by a(n)
What will be an ideal response?
increase in the unemployment rate and an increase in the price level.
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"I'm tired of eating muffins for breakfast. Today I am trying a bagel." This statement most clearly reflects the: a. ceteris paribus condition
b. the law of supply. c. law of diminishing marginal utility. d. law of comparative advantage.
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's total economic costs per glass?
a. $0.18 b. $0.10 c. $0.08 d. $0.02
In the 1990s, the United States benefited from a series of favorable supply shocks. This caused a(n)
A. increase in inflation and unemployment. B. decrease in inflation and unemployment. C. increase in inflation and a decrease in unemployment. D. decrease in inflation and an increase in unemployment.
In each of the following scenarios, state whether the labor supply curve would shift to the left, to the right, not shift at all, or if the shift is ambiguous because there is more than one effect and they would move the curve in opposite directions.(a)The stock market rises sharply.(b)Fewer teenagers work while in school than before.(c)A large fraction of the population flees the country because of a bird flu epidemic.(d)The expected future wage declines and the stock market crashes.(e)The current real wage rate rises.
What will be an ideal response?