In the above figure, suppose the economy is in equilibrium at point A. The Fed engages in an expansionary monetary policy that is fully anticipated by the public. Other things being equal, what point represents the new equilibrium according to the rational expectations theory?

If the firms hires 5 workers, the average variable costs equals

a. $10 b. $100 c. $800 d. Need more information

The basic difference between macroeconomics and microeconomics is that

a. microeconomics is concerned with aggregate markets and the entire economy, while macroeconomics is concerned with specific individual markets. b. macroeconomics is concerned with policy decisions, while microeconomics applies only to theory. c. microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy. d. macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.