Both the permanent-income and life-cycle hypotheses make the assumption that people prefer a ________ consumption pattern in the long run, and so have a ________ short-run MPC out of sudden changes in income
A) smooth, low
B) smooth, high
C) jagged, low
D) jagged, high
A
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Refer to the figure above. What is the equilibrium wage rate and employment level after the labor demand curve shifts to LD2?
A) $50 and 50 units of labor B) $40 and 30 units of labor C) $20 and 40 units of labor D) $10 and 60 units of labor
The output of a bakery is 250 loaves of bread, when 10 workers are employed. If one more worker is hired, the total output increases to 275 loaves
Given that labor is the only variable input that the bakery uses, and the market wage rate is $10, calculate the marginal cost when employment is increased from 10 to 11 workers.
Which of the following is not a factor of production?
a. A computer chip. b. The service of a lawyer. c. Dollars. d. All of these are factors of production.
When the Fed makes open-market sales bank
a. withdrawals and lending increase. b. withdrawals increase and lending decreases. c. deposits and lending increase. d. deposits increase and lending decreases.