In the Keynesian model, the full-employment level of output is the amount of output produced when
A) the quantity of labor demanded equals the quantity of labor supplied.
B) the market wage exceeds the efficiency wage.
C) labor is paid an efficiency wage, and the real wage equals the marginal product of labor.
D) the real wage exceeds the nominal wage.
C
Economics
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A natural monopoly that is regulated to set its price according to the marginal cost pricing rule will
A) incur an economic loss. B) maximize its profit. C) produce a quantity of output such that price is above average total cost. D) produce a quantity of output such that marginal cost is above average total cost.
Economics
If the price level was 100 in 2014 and 102 in 2015, the inflation rate was
A) 102%. B) 20%. C) 2%. D) 0.2%.
Economics