PLEASE ANSWER THE QUESTIONS WITH THE CORE ECONOMY FROM 16.4 TO 16.9 !!

QUESTION 1

The statement: 'In the long run, we are all dead', was made by which of the following well-known economists?

Select one:

a.Milton Friedman

b.Adam Smith

c.Karl Marx

d.John Maynard Keynes

QUESTION 2

Consider Figure 16.16 below:

16 SVK 14 POL . SPA 12 TUR . 10 GRC GER . FIN FRA CO Unemployment rate (2001-11 average, %) .PRT ITA HUN . CAN . BEL CZE . UK IRL 6 SWE USA AUT . JPN AUS . NZL . DNK 4 ISL KOR LUX NLD . NOR . SWI N 0 O 10 20 30 40 50 60 Gross unemployment benefit replacement rate (2001-11 average, %)B High markup, attracts entry of firms A Equilibrium markup, * Markup, H Low markup, promotes C exit of firms Profit-maximizing markup 190 210 250 Firms entering Equilibrium Firms leaving number of firms Number of firms, n100 Cumulative share of income (%) 0 OBAD 100 Unemployed Workers Employers Cumulative share of the population from lowest to highest income (%)