An experienced software engineer starts a new job with a pay package that is 14 percent higher than her previous salary. The expected inflation in the economy is 10 percent. However, the actual inflation in the following year turns out to be 14 percent. Which of the following costs of inflation did she have to bear?

As the circular flow model points out, a choice that households make is how

A) many resources a firm will hire. B) many goods and services are produced. C) many goods and services are purchased. D) much labor is hired. E) much the government will collect in taxes and how much the government will spend on transfer payments.

Without any change in the supply of labor, how will shifts in the demand for labor affect equilibrium wage and employment?

What will be an ideal response?