Suppose that the price of capital is $10 per unit and the price of labor is $8 per unit. Write an equation for an isocost line using this information. What would be the slope of this isocost line?
What will be an ideal response?
The equation for the isocost line would be (10 ? K) + (8 ? L) = TC. The slope of the isocost line would be (-PL/PK) or -8/10.
Economics
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If there is an inflationary gap in the economy, discretionary fiscal policy would likely involve an action to
A) shift the aggregate demand curve to the right. B) shift the aggregate demand curve to the left. C) shift both the aggregate demand curve and aggregate supply curve to the right. D) shift both the aggregate demand curve and aggregate supply curve to the left.
Economics