Refer to the figure above. What is the change in consumer surplus when the market changes from perfect competition to a monopoly?
A) The consumer surplus increases by 30 units.
B) The consumer surplus decreases by 45 units.
C) The consumer surplus increases by 90 units.
D) The consumer surplus decreases by 135 units.
D
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The natural unemployment rate
A) is a constant figure of about 4 percent. B) fluctuates with the rate of inflation. C) is the unemployment rate that occurs when the economy is at full employment. D) is equal to cyclical unemployment.
The wealth effect refers to
A) the impact of household real wealth on consumption, savings, and the IS curve. B) the impact of household real wealth on money, prices, and the LM curve. C) the impact of household real wealth on short term and long term interest rates. D) the impact of household real wealth on aggregate supply curve.