Frieda enjoys cooking and baking. Her utility function is U(C, B) = 6C + 3B, where C is the number of hours she spends cooking and B is the hours she spends baking. What is Frieda's MRS of cooking with baking?
A. 1/6
B. 2
C. 6
D. It cannot be determined from the given information.
B. 2
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In the table above, if the wage rate is $8.00 per hour, the profit-maximizing number of workers is
A) 1. B) 2. C) 4. D) 5.
Both the monetarist view of the economy and the simple quantity theory of money hold that velocity is constant
Indicate whether the statement is true or false
Refer to the graph shown. Economic output in year 0 is $50 billion. What is potential output in year 3?
A. $54.6 billion B. $50 billion C. $47.0 billion D. $56.3 billion
Assuming the aggregate supply curve is vertical, which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium output will increase but the price level will stay the same. B. The equilibrium price level will increase but output will stay the same. C. The equilibrium price level and output will both decrease. D. The equilibrium price level and output will both increase.