While price misperceptions can cause an increase in labor supply and GDP in the short-run, in the long run:
a. money is no longer neutral in the model.
b. labor supply returns to its initial position.
c. money negatively impacts real GDP.
d. all of the above.
Answer: b. labor supply returns to its initial position.
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An increase in autonomous consumption ________
A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above
If Gloria is woman in a developing country, then it is likely that
a. she is less educated than most men in her country b. her brother has dropped out of high school, but not she has graduated c. she has more employment opportunities and earns higher wages than her male classmates d. she and other women will not have to work long hours in agriculture e. she has special access to resources such as land, capital, and technology
Which fundamental economic question is most closely related to the issues of income distribution and poverty?
a. The What to Produce question. b. The Why to Produce question. c. The How to Produce question. d. The For Whom to Produce question.
Prices
A. solve the problem of distribution of products among consumers. B. act as rationing devices. C. under laissez-faire produce an efficient allocation of resources. D. do all of the things listed here.