Exhibit 20-1 -According to the Data in Exhibit 20-1, If Economic Conditions

question 170

Multiple Choice

Exhibit 20-1

-According to the data in Exhibit 20-1, if economic conditions change such that the unemployment rate declines to 4.5 percent, what is the new value of aggregate hours?

• A)211 billion hours per year
• B)205 billion hours per year
• C)Aggregate hours will be unaffected.
• D)241 billion hours per year
• E)220 billion hours per year

---

Definitions:

Equilibrium Efficiency

The optimal allocation of resources in a market where supply and demand are balanced, leading to the best possible outcome for both producers and consumers.

Utility

A measure of the satisfaction or benefit that consumers derive from consuming goods or services.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Shoplifter

An individual who steals merchandise from a retail establishment.