Suppose the marginal product of labor is MPN = 200 - 0.5Nwhere N is aggregate employment. The aggregate quantity of labor supplied is 300 + 8w, where w is the real wage. What is the equilibrium quantity of employment?
A. 760
B. 190
C. 380
D. 12
Answer: C
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If you take $500 out of a savings deposit and put it into a checking account, the immediate effect (do not consider the money multiplier):
a. M1 rises, M2 rises, and the monetary base remains the same. b. M1, M2, and the monetary base rise. c. M1, M2, and the monetary base fall. d. M1, M2, and the monetary base remain the same. e. M1 rises, M2 remains the same, and the monetary base remains the same.
Sandra routinely uses currency to purchase her groceries. She is using money as a medium of exchange
a. True b. False Indicate whether the statement is true or false
Suppose that each week Henry buys 12 peaches and 3 apples at his local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
A. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must be greater than his marginal utility from the 3rd apple he buys. B. Henry is not maximizing his utility. C. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must equal his marginal utility from the 3rd apple he buys. D. for Henry the law of diminishing marginal utility does not apply to peaches.
Action taken by the Fed to reduce the money supply will tend, all other things unchanged,
A) to reduce investment. B) to increase investment. C) to have no effect on net exports. D) to increase real GDP and the price level.