In the above figure, Brendan originally consumes at point A. If his income rises and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as

The economy is operating at maximum capacity. The short-run AS curve is _______. An increase in the price level will ______ output.

a) horizontal; not change b) horizontal; increase c) vertical; not change d) vertical; increase

Unions face a trade-off between higher wages and

A) fewer available positions. B) more available positions. C) equipment. D) none of the above.