Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of goods by 50%. In the long run, what happens to the expected price level and what impact does this have on wage bargaining

The expected price level falls., new wage contracts will be negotiated at a lower wage in the market.

Explanation:

In the case when the economy is in the long run equilibrium and the federal government decreased the goods purchase by 50%. So in the long run the expected price level would be decline and the effect on wage bargaining would be that the new wage control would be negotiated at a less wages in the market place

Therefore, the correct option is c

And, the same would be relevant

the shareholder equity is $295,400

Explanation:

The computation of the shareholder equity is given below:

We know that

Assets = liabilities + stockholder equity

$458,600 + $658,200 = $425,950 + $395,450 + shareholder equity

So, the shareholder equity is

= $1,116,800 - $425,950 - $395,450

= $295,400

Hence, the shareholder equity is $295,400