Collaterized debt obligation CDO

The lag between changes in the Fed's interest rate target and large responses of output means that the Fed may want to ________ interest rates ________ output recovers to its natural level

A) raise, after B) lower, before C) raise, before D) lower, after

The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except:

a. what percentage of total costs are made up of labor costs. b. how much quantity demanded in the output market will be reduced by a higher price. c. the capital to labor ratio before the wage increase. d. how easily other inputs can be substituted for labor.