Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) the unemployment rate is very, very low.
B) incomes and profits are rising.
C) firms are operating above their normal capacity.
D) the economy is below full employment.
E) there is pressure on wages and prices to rise.
D
Economics
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What potential economic problem can arise with a guaranteed payment contract for professional athletes that is not related to performance?
Please provide the best answer for the statement.
Economics
Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price is $2, the profit-maximizing (or loss-minimizing) firm:
A. should shut down and produce zero. B. should produce output equal to 4. C. is making an economic profit of $8. D. should try to produce more output.
Economics