If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would suffer losses if the

Suppose a price-taking firm uses a single input - labor - to produce an output x. The production technology has diminishing marginal product of labor throughout. a. On a graph with labor hours on the horizontal and output on the vertical axis, illustrate the production frontier for this firm. b. For a given wage rate w and output price p, illustrate three isoprofit curves corresponding to profit levels ?

What will be an ideal response?

One complication that tends to prolong recessionary gaps is that wages

A. are fixed by unions, which represent nearly all workers in the United States. B. tend to rise rapidly. C. rarely fall. D. tend to move in the opposite direction from prices.