The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the
A) MC curve slopes upward.
B) MC exceeds the ATC.
C) AFC curve (not shown) starts to slope upward.
D) None of the above answers is correct.
B
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In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if disposable income decreases?
A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF0. C) The supply of loanable funds curve would shift rightward to a curve such as SLF2. D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.
In the simple Keynesian framework, the price level
A) is fixed. B) varies directly with unemployment. C) varies inversely with wages. D) is indeterminate.