When workers expect the real wage to rise at a rate similar to productivity improvements, ________
A) the decrease in labor supply raises the real wage
B) the increase in labor supply lowers the real wage
C) the increase in labor supply raises the real wage
D) the decrease in labor supply lowers the real wage
A
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In monopolistically competitive market structure, because each good sold in the market is ____, each firm is considered a ____
a. slightly different; price maker b. slightly different; price taker c. the same; price maker d. the same; price taker
The statement "balancing the budget on the backs of the poor" refers to
A. Transfer payment cuts in order to reduce government expenditures. B. Government spending cuts on public parks in order to reduce government expenditures. C. Tax increases on the poor in order to increase government revenues. D. Government spending increases in order to increase aggregate expenditures.
Countries with more economic freedom during 1980-2009 tended to do which of the following?
What will be an ideal response?
Refer to the graph shown. Assume the economy is in short-run equilibrium at point A below potential output. The government opts for an expansionary fiscal policy in an attempt to pull the economy out of the recession. Not considering shifts in aggregate supply, an economist with a functional finance view, who also believes in a full crowding out effect, would conclude that the economy will end up at point:
A. A. B. B. C. C. D. D.