A supply shock, such as the OPEC oil-price increases in the 1970s,
A) can lead to accelerating inflation, if an accommodation policy tries to maintain the pre-shock level of real GDP.
B) will cause lower real wages in long-run equilibrium.
C) will reduce the natural level of real GDP.
D) both B and C
D
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Refer to Monopoly Problem. How much consumer surplus will there be when this monopolist charges its profit maximizing price?
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. $225 b. $450 c. $900 d. $1800
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is ten percent per year. How fast did the economy grow between these two years?
A) 10 percent B) 12 percent C) 21 percent D) 42 percent
Which of the following will result in a leftward shift of the market supply curve for labor?
a. an increase in immigration b. a decrease in labor productivity c. an increase in the working-age population d. an increase in nonwage income
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is?