Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
A) the unemployment rate is very low.
B) there is pressure on wages and prices to fall.
C) income and profits are falling.
D) firms are operating at below capacity.
E) the economy is below full employment.
A
Economics
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If the money price of hats rises and no other prices change, the I. relative price of a hat rises. II. opportunity cost of a hat rises
A) only I B) both I and II C) only II D) neither I nor II
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Rate of return regulation sets the price at a level that enables the regulated firm to earn a specified target percent return on its
A) total cost. B) sales revenue. C) capital. D) variable cost.
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