Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) not change interest rates. B) increase the inflation rate.
C) increase interest rates. D) decrease interest rates.
C
Economics
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A firm should hire workers up to the point where
A) MP = P. B) MFC = P. C) MFC = MRP. D) MP = MRP.
Economics
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A) decrease output. B) increase output. C) shut down. D) continue to produce its current output.
Economics