A firm faces the labor productivity and cost schedule in the table above. How many workers will this profit-maximizing firm employ?

If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the demand for used cars is

A) elastic. B) inelastic. C) unit elastic. D) arc elastic.

In the New Keynesian open economy model with a flexible exchange rate, an increase in anticipate future total factor productivity

A) has no effects. B) increases aggregate output. C) reduces aggregate consumption. D) causes an exchange rate appreciation.