Refer to the following figure. The price of capital is $50 per unit:What is the price per unit of labor?

Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to

A) increase aggregate demand, increase prices and increase real GDP. B) increase short-run aggregate supply, decrease in prices and decrease in real GDP. C) increase short-run aggregate supply, decrease prices and increase real GDP. D) increase aggregate demand, increase prices and decrease real GDP.

Which of the following would cause the long-run aggregate supply curve to shift to the right?

A) an increase in wages B) an increase in demand C) an increase in productivity D) an increase in taxes on profits