Evaluate the following statement and illustrate your answer with aggregate demand and aggregate supply curves: In the short run, if an economy experiences inflation of 10 percent, the cause of the inflation is unimportant. Whatever the cause, the only important issue the government needs to be concerned with is the 10 percent increase in the price level

Refer to the Article Summary. Labor productivity in the UK was well below the productivity in five of the other G7 nations, only faring better than Japan.. Labor productivity is important for an economy because an increase in labor productivity

A) will increase output and decrease wages in the long run. B) will increase the labor force participation rate. C) will create short-run, but not long-run, economic growth. D) allows the average consumer to increase consumption.

Suppose the government grants child care subsidies to mothers entering the labor force. What is likely to happen to the equilibrium wage and quantity of labor?

A) The equilibrium wage rises and the equilibrium quantity of labor falls. B) The equilibrium wage falls and the equilibrium quantity of labor rises. C) The equilibrium wage and the equilibrium quantity of labor fall. D) The equilibrium wage and the equilibrium quantity of labor rise.

In a perfectly competitive market with 1,000 firms, each demanding 50 laborers at a wage rate of $5 per hour, the quantity demanded of labor by the industry producing for this market at this wage is

a. 25,000 workers b. 50,000 workers c. 250,000 workers d. 5,000 workers e. insufficient information to determine the quantity

Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15Refer to Figure 6.15. If the price of a hot dog is $4, Jason's income is

A. $50. B. $400. C. $600. D. indeterminate because the price of sandwiches is not given.