In order for the classical model to explain expansions and recessions, which of the following would have to be true?
a. Labor supply could not change.
b. The labor market equilibrium would have to change suddenly and significantly.
c. Labor demand could not change.
d. The labor market equilibrium would have to change slowly.
e. The labor market equilibrium could not move.
B
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Use the following graph for a monopolistically competitive firm to answer the next question.
In the short run, this monopolistically competitive firm will set price at
A. $65 and produce 35 units of output. B. $55 and produce 45 units of output. C. $50 and produce 35 units of output. D. $52 and produce 50 units of output.
Two methods of measuring GDP are
A) the income approach and the expenditure approach. B) the income approach and the receipts approach. C) the goods approach and the services approach. D) the saving approach and the investment approach.
Which of the following is true of the relationship between the marginal cost function and the average total cost and average variable cost functions?
A) If MC is greater than ATC and AVC, then ATC and AVC will increase. B) The ATC and AVC curves intersect the MC curve at minimum MC. C) The MC curve, ATC curve, and AVC curve all intersect at the same point. D) At each level of output, MC is equal to difference between AVC and ATC.
Suppose Jack's salary increased from $100,000 to $200,000 per year between 2004 and 2014 and the price index increased from 100 to 300 during the same period. Which of the following statements best describes Jack's situation?
What will be an ideal response?