After a shift from AD0 to AD1, which of the following patterns of adjustment is consistent with the Lucas model?
A) A to B to E
B) A to F to E
C) A to C to E
D) A to C to A
C
Economics
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Frictional and structural unemployment both exist when
A) the economy is at the peak of the business cycle. B) the economy is in long-run equilibrium. C) the economy is in an expansionary phase. D) the economy is in short-run equilibrium.
Economics
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
Economics