Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.
b. Her producer surplus will increase.
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Land rents account for nearly
A. 5 percent of U.S. income. B. 15 percent of U.S. income. C. 25 percent of U.S. income. D. 50 percent of U.S. income.
Given the following formula for the Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 1/2(inflation gap) + 1/2(output gap)Every one percent decrease in the rate of inflation will:
A. raise the target federal funds rate by 1.5%. B. lower the target federal funds rate by 0.5%. C. raise the target federal funds rate by 0.5%. D. lower the target federal funds rate by 1.5%.