Based on the graph showing a contractionary policy response to a negative supply shock, a decrease in aggregate demand leads to ______.
a. increased inflation and decreased unemployment
b. increased output and prices, and decreased unemployment
c. decreased output and prices, and increased unemployment
d. increased output and increased prices
c. decreased output and prices, and increased unemployment
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The more generous the amount of unemployment benefits, the
A) lower the opportunity cost of job search. B) shorter the time spent searching for a suitable job and the higher the opportunity cost of being unemployed. C) shorter the time spent searching until accepting a suitable job. D) higher the opportunity cost of job search. E) lower the natural unemployment rate.
What is an economic variable?
What will be an ideal response?
Indifference curves
a. are nonintersecting. b. are contour lines of a utility function. c. are negatively sloped. d. All of the above.
If the demand curve is P = 48 - 2Q and MC = 0, calculate the lost social welfare that results from a single price monopoly profit maximizing strategy.
What will be an ideal response?