An increase in the output price will increase the firm's demand for labor, all else equal

Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets produced domestically?

What will be an ideal response?

Because prices are slow to move in the short-run, when the Federal Reserve lowers the federal funds rate

A) nominal interest rates rise. B) real interest rates fall. C) inflation falls. D) real interest rates rise.