Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?
A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures
B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap
C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation
D) all of the above
E) none of the above
C
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As Reba consumes four slices of pizza, her total utility rises from 0 to 18, to 24, to 28, and to 30, respectively. What is her marginal utility of the first slice of pizza?
a. 18 b. 24 c. 2 d. 7 e. 8
In order to maximize its profit in the short run, an airline should offer an additional flight whenever
a. its marginal revenue exceeds its sunk costs b. it marginal revenue exceeds its average total cost c. the average seat price exceeds its sunk costs d. the average seat price exceeds its average total cost e. the additional revenue exceeds the additional costs