Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result,

A) the short-run aggregate supply curve will shift to the left as wages increase.
B) the purchasing power of wages will rise if wages increase by 3%.
C) workers will be willing to take lower wages next year.
D) aggregate demand will increase by 3%.


A

Economics

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A paper company dumps nondegradable waste into a river that flows by the firm's plant. The firm estimates its production function to be:

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Which of the following is a characteristic of monopolies?

a. Producing less at a higher average cost b. Producing more at a lower average cost c. Eliminating price discrimination d. Strengthening market forces

Economics

The reason U.S. workers were better paid than foreign workers during the 1950s and 1960s is

A. U.S. workers were better trained and educated. B. U.S. workers worked harder. C. we had more capital (plant and equipment) per worker. D. the U.S. dollar was the world's strongest currency.

Economics

Suppose a one-year discount bond offers to pay $1000 in one year and currently has a 15% interest rate. Given this information, we know that the bond's price must be

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Economics