Describe how (if at all) the IS curve, MP curve, and AD curve are affected in the following situation: Firms become more optimistic about the future of the economy. O A. The MP and AD curves shift to the left, and there is a movement along the IS curve to lower output. OB. The IS curve is not affected, the MP curve shifts to the right, and the slope of the AD curve becomes flatter. O C. All the curves...
1. Draw the MP curve, below it draw the IS curve and below it draw a graph with inflation on the vertical axis, output on the horizontal axis, but do not yet plot a curve. 2. To plot the AD curve: a. pick an inflation rate and draw a dotted horizontal line at that rate. b. Given the rate of inflation you picked use the monetary policy curve to show at what level the Fed would target the interest rate....
2. Consider the graph below which illustrates a given firm's AP and MP curves: AP MP Average and marginal product of labor MP 10 20 40 50 30 Labor a. At what level of output is AVC minimized? Explain your answer. b. When 10 workers are hired, what is the firm's output? c. When 15 workers are hired, what is the firm's AVC if w = 300? d. When 15 workers are hired, what is the firm's SMC if w-300?...
P + Lab 10 Using the above graph, which worker is located in the increasing MP region of the TP curve? A) 3rd worker B) 7th worker C) 10th worker D) none of the above workers are in the increasing MP region
Problem 1 Define Mp 2" - 1 for a prime number p. The number Mp is called a Mersenne number. For example, M2 3, M37, M5 31, and M7127, and they are all prime numbers. When Mp is a prime number, it is called a Mersenne prime (1) Is M11 a prime number? (2) Is M13 a prime number?
miracle printers (MP) manufactures printers. Assume that MP Recently paid $300,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years. after using the patent for four years MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year five, to amortize the remaining...
Suppose a firm has the production function Q = 50KL with MP, = 50K and MP, = 50L . 1) If the wage rate is $10 per unit of labor and the rental rate of capital is $5 per unit of capital, how much capital and labor should the firm employ in the long run to minimize the cost of producing 40,000 units? 2) Using the solution in part 1), what will the firm's long-run total cost be?
Equilibrium in the market for real money is represented by the _________ curve. Group of answer choices LM MP Phillips IS
6. Consider the IS-MP-Phillips curve framework. What happens to real interest rate R, short- run output Y, and change in inflation An to these events? Consider each event individually using graphs and assume the economy starts from the steady state. (a) (10 points) Japanese citizens get a sudden taste for American goods and American export to Japan sharply increases. The central bank decides not to respond. (b) (10 points) Japanese citizens get a sudden taste for American goods and American...
VMP MRP Labor WageTP MP ATP 3 $6 200 AL MCL ATCL AL MP*P MP*MR $ $ 4 $7 260 60 $10 180 180 $ $ 5 $8 295 35 $105 12 105 $ $ $ 6 $9 315 20 14 60 60 $ $ 7 $10 326 $33 11 16 33 $ $ $ 8 $11 332 6 18 18 18 $ $ $ 9 $12 333 1 20 3 3 The table above shows the relationship between additional...