Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS1 and AD1
Suppose there is a persistent reduction in labor force participation, which reduces total planned production at any given price level. The resulting change in the economy's long-run equilibrium position would be represented by a
A) movement from B to C. B) movement from C to A.
C) movement from A to B. D) movement from A to C.
D
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The New Keynesian transmission mechanism for monetary policy is characterized by
A) helicopter drops of money. B) money having an impact on the real interest rate. C) banks using money injections for business loans. D) the government buying goods with fresh money.
The marginal product of labor and the price of the output produced determine the:
A. worker mobility B. the demand for labor C. the price of labor D. the supply of labor