Suppose domestic beef producers face demand of QD = 1000 - 5P. Suppose the Chinese acquire a taste for U.S. beef such that their demand is QD = 500 - 5P. Market demand is now

Which of the following monetary policies could reduce the amplitude of oscillations of output around its natural level?

A) raising interest rates before actual output attains its natural level B) lowering interest rates when an economy is still overheated C) lowering interest rates when output is above its natural level D) all of the above.

The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent specific tax on the good sold by the firm will cause the firm to

A) demand less labor. B) demand more labor. C) offer its workers only $4.90 per hour. D) hire 0 units of labor per hour.