A manager wishes to estimate an average cost equation of the following form:C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: Given the above information, when output is 20 units, what is average cost?

Which of the following could increase unemployment and inflation simultaneously?

A) a decrease in the real wage B) an increase in oil prices C) expansionary monetary policy D) contractionary monetary policy

The Laffer curve shows that as tax rates increase

A) initially tax revenues increase, then decrease. B) tax revenues decrease as the incidence of cheating on tax returns increases. C) tax revenues increase as more individuals and businesses have to pay taxes. D) tax revenues remain unchanged.