The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will

Which of the following could create a cost advantage for a monopoly?

A) better technology B) lower friction due to better organization C) standardization D) All of the above.

If policymakers do nothing in response to an inflationary gap, what will happen?

A. A rapid movement toward lower unemployment and higher inflation B. A rapid movement toward lower unemployment and lower inflation C. A slow movement toward higher unemployment and higher inflation D. A slow movement toward lower unemployment and lower inflation