Refer to the figure above. The economy is currently at E. Which of the following is likely to happen if a recession hits the economy? Assume that wages are downwardly rigid
A) The labor market equilibrium will move from E to F.
B) The labor market equilibrium will move from E to D.
C) The labor market equilibrium will move from E to G.
D) The labor market equilibrium will move from E to H.
C
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (6) might represent
A. the purchase of armored personnel vehicles by government. B. corporate income tax payments. C. the payment of payroll taxes by households. D. the purchase of basketballs by the Ogallala school district.
The difference between the investment demand curve and the investment schedule is that the former shows a(n)
A. direct relationship between investment and interest rate, while the latter shows no correlation between investment and income. B. inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate. C. direct relationship between investment and income, while the latter shows no correlation between investment and interest rate. D. inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income.
A firm in monopolistic competition maximizes profit by producing the quantity at which
A) marginal revenue equals marginal cost. B) price equals marginal revenue. C) price equals marginal cost. D) demand equals marginal cost. E) price equals average total cost.
Which of the following is an example of the law of demand?
A) An increase in the price of magnetic optical disks is followed by a reduction in the amount of magnetic optical disks purchased. B) An increase in the price of tablets is followed by an increase in the sale of tablets. C) A decrease in the price of milk has no effect on the amount of milk consumed. D) The amount of smartphones sold increases while the price of smartphones is constant.