Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 420,000 B) W = $9.00; Q = 410,000
C) W = $8.50; Q = 400,000 D) W = $8.00; Q = 390,000
D
You might also like to view...
"A rise in the money supply raised output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise B) rose; fall C) fell; rise D) fell; fall
Government regulations that increase the cost to the employer of hiring workers will:
A. increase the demand for labor. B. increase the supply of labor. C. decrease the supply of labor. D. decrease the demand for labor.
When the coupon rate on newly issued bonds decreases from 6 percent to 5 percent, the prices of existing bonds:
A. remain unchanged. B. decrease only if the coupon rate is less than 5 percent. C. decrease. D. increase.
Explain what will happen to the production possibilities curve over time if society gives up some consumption goods in favor of more capital goods
What will be an ideal response?