Those who accept both the rational expectations hypothesis and the assumption of flexibility of wages and price would likely argue that
A) if policy makers are willing to accept a high inflation rate, they can reduce unemployment to a point below the natural rate.
B) policy makers can eliminate fluctuations in the level of business activity with careful planning of a widely publicized monetary policy.
C) saving and investment do not contribute to economic growth.
D) active policy making does not contribute to economic stability.
D
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. At 10 concerts, the
A) marginal private cost equals the marginal external cost. B) marginal social cost equals $60,000. C) marginal private cost is more than $40,000. D) marginal external cost equals $60,000. E) marginal external cost equals $80,000.
The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $44, how many messenger bags will be sold per week? Use the midpoint formula
What will be an ideal response?