Refer to the information provided in Figure 10.3 below to answer the question(s) that follow.  Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. After the firm is fully able to adjust all inputs, the firm will hire ________ units of labor to maximize profits.

Central banks control exchange rates by intervention. If a nation such as Japan wished to peg its market rate at a certain level, such as ¥100 = $1, what should it do if the actual market rate began to depreciate to ¥125 = $1?

a. It should purchase dollars with its own currency. b. It should sell dollars from its treasury and retire its own currency. c. It should increase its GDP to increase exports. d. It should petition the IMF for a rate change.

One of the flaws of GDP is that it

A. includes only transactions that take place in formal businesses. B. includes measures of changes of life associated with producing output. C. includes measures of the underground economy. D. ignores transactions that do not take place in organized markets.