Refer to the figure above. What is the equilibrium employment if the labor demand curve is LD1 and the labor supply curve is LS1?

Predatory pricing refers to

a. a firm selling certain products together rather than separately. b. a monopoly firm reducing its price in an attempt to maintain its monopoly. c. firms colluding to set prices. d. All of the above are examples of predatory pricing.

Economists who favor activist monetary policy argue that

A) the economy does not always equilibrate quickly enough at the Natural Real GDP or full-employment output and therefore needs help. B) activist monetary policy is effective at smoothing out the business cycle. C) activist monetary policy is flexible and flexibility is a desirable quality in monetary policy. D) a and b E) a, b and c