The profit-maximizing level of employment by the monopsonist in the labor market shown below will be:

Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS1 and AD1

Suppose there is a persistent reduction in labor force participation, which reduces total planned production at any given price level. The resulting change in the economy's long-run equilibrium position would be represented by a A) movement from B to C. B) movement from C to A. C) movement from A to B. D) movement from A to C.

If the price of inputs rises and foreign income rises:

a. Aggregate demand and aggregate supply rise. b. Aggregate demand and aggregate supply fall. c. Neither aggregate demand nor aggregate supply change. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.