Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage
a. increased, and the equilibrium quantity of labor increased.
b. increased, and the equilibrium quantity of labor decreased.
c. decreased, and the equilibrium quantity of labor increased.
d. decreased, and the equilibrium quantity of labor decreased.
a
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An increase in the relative price of a good cannot be caused by
A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good. B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good. C) a decrease in the nominal price of the other good while the price of the good itself remains constant. D) an increase in the nominal price of the other good while the price of the good itself remains constant.
The long-run aggregate supply curve represents the level of output possible if the economy:
A. is operating at full capacity. B. is operating at an unemployment rate of zero. C. has a zero inflation rate. D. has no structural unemployment.
Which one is a macroeconomic topic?
a. A business decides to buy new software. b. A person decides to return to college. c. The central bank lowers interest rates to stimulate the economy. d. The government issues new environmental regulations.
The opportunity cost of holding money varies with the __________.
Fill in the blank(s) with the appropriate word(s).