If firms in a perfectly competitive industry produce an undifferentiated product, it is not possible to increase profits of the individual firms in the industry by increasing market demand for the product because of the large number of available

Along the short-run Phillips curve SRPC0 the expected inflation rate is

A) 7 percent. B) 3 percent. C) 6 percent. D) an amount that can be determined from the figure, but none of the above answers is correct. E) an amount that cannot be determined from the figure.

The income effect of a wage increase will cause a worker to devote

A) more time to labor and less time to leisure. B) less time to labor and more time to leisure. C) more time to labor and more time to leisure. D) less time to labor and less time to leisure.