Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's annual economic rent to labor is

List and briefly explain the primary goals of the Fed

What will be an ideal response?

Refer to the diagram and assume the economy initially is in equilibrium at point a. Suppose the aggregate demand declines from AD 1 to AD 2 and the economy moves from a to c. In the mainstream view, the resulting decline in the price level need not shift the short-run aggregate supply curve from AS 1 to AS 2 because:

A.  supply creates its own demand.
B.  nominal wages are (at least for a time) inflexible downward.
C.  firms misperceive the price-level decline as being permanent.
D.  deflation reduces the purchasing power of the dollar.