1. Should the Fed stick to money or interest rate targets to best stabilize GDP if the only source of "shocks" in the economy is fluctuating autonomous money demand?

2. What are the five most important factors that influence the shift in the labor market demand curve?

3. Fran is the owner of an apple orchard. She pays her 70 apple pickers $22 per hour to pick apples, which she sells for $5.50 per box. What is the marginal revenue product of labor of the last worker Fran hired if she is maximizing profits? What is that worker's labor's marginal product?

4. Take another look at this question. Fill in the blanks for Tommy's Televisions in the table below, where L is the number of workers, Q is the weekly output of televisions, and MP is the marginal product of labor (television sets perweek). P represents the product price in dollars, MRPL represents the marginal revenue product of labor in dollars per week, W represents the wage rate in dollars per week, and PROFIT is the increased profit from adding one more worker (dollars per week).

Q MP B 15 7 The quantity of each minus the 21 6 previous extra worker 26 5 e.g. 15-8=7 and 30-26=4 30 4 33 3 Enter numeric responses using integers.)Graph A Wage [dollars) Quantity of labour