In the short run, a firm will produce a rate of output where marginal revenue equals marginal cost, even if total revenue is less than total cost, as long as total revenue exceeds total variable cost

According to the natural rate hypothesis, if the economy begins at full employment with an unemployment rate of 5 percent and then the inflation rate increases from 2 percent to 4 percent, then the economy will

A) not see any lower unemployment, even temporarily, just higher inflation. B) have lower unemployment but then return to its natural rate with an inflation rate of 4 percent. C) eventually return to its natural rate of 2 percent inflation and its natural unemployment rate of 5 percent. D) eventually return to its natural rate of 2 percent inflation and a new lower unemployment rate. E) stay at the 4 percent inflation rate and the natural unemployment rate will fall.

A depreciation of the South Korean won against the U.S. dollar will

A. Raise the dollar price of Korean goods. B. Lower the won price of Korean goods. C. Raise the won price of U.S. goods. D. Lower the dollar price of U.S. goods.