The above figure shows the market for steel ingots. What is the change in externality cost if the market switches from competitive equilibrium to social optimum?

Explain how expansionary and contractionary monetary policies affect aggregate demand through the exchange rate channel

What will be an ideal response?

Labor supply

A) must necessarily increase when the real wage increases. B) increases if the substitution effect exceeds the income effect. C) is increasing and then decreasing in the real wage. D) increases when taxes increase.