Refer to the graphs below. In Graph A, an increase in the price level from P1 to P2 will cause:
In the graphs below, QP refers to the economy's potential output level.
A. The nation's unemployment rate to be greater than the natural rate of unemployment
B. The nation's unemployment rate to be less than the natural rate of unemployment
C. Product prices to decrease
D. Profits to decrease
B. The nation's unemployment rate to be less than the natural rate of unemployment
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In a Cournot equilibrium, each firm chooses an output level that
a. maximizes joint profits. b. maximizes the price received. c. maximizes profits given what the other firm produces. d. maximizes revenue given what the other firm produces.
Refer to the diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The data suggest that:
A. West Lothian should specialize in, and export, beer.
B. both countries will be better off if they do not engage in specialization and trade involving
these two products.
C. West Lothian should specialize in, and export, pizza.
D. East Lothian should specialize in, and export, beer.