Refer to the figure above. What is the initial equilibrium employment and wage rate?
A) 10 units of labor and $25 B) 20 units of labor and $25
C) 30 units of labor and $15 D) 10 units of labor and $35
B
You might also like to view...
A Major League Baseball player signs a contract that pays $27 million over 5 years. The $27 million is the contract's ________ value
A) real B) implicit C) nominal D) external
As the price level falls and other things remain the same, real wealth ________ and ________
A) decreases; the short-run aggregate supply decreases B) decreases; the quantity of real GDP demanded decreases C) increases; aggregate demand increases D) increases; the quantity of real GDP demanded increases
Automatic stabilization refers to
A) the policy of lowering tax rates during a recession. B) the policy of increasing autonomous G during a recession. C) the effect of income taxes in lowering the multiplier effect of changes in autonomous planned spending. D) all of the above.
Draw a two period budget line where the borrow/lending rate of interest, r, allows consumers to choose consumption in each of the two periods. C1 and C2 given their anticipated income on two periods, Y1 and Y2 . The vertical (C2) intercept is
a. b. c. d.