A weakness in the classical economic claim that a recession is caused by a decrease in labor demand curve is
a. that labor demand never changes
b. that labor demand increases during a recession
c. that labor supply decreases during a recession
d. the confusion between a shift of the labor demand curve and a movement along that curve
e. the impossibility in the classical model of total spending ever being deficient
E
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Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone?
A) $180 B) $100 C) $80 D) $20
Profit-maximizing firms in a competitive market produce an output level where
a. marginal cost equals marginal revenue. b. marginal cost equals average total cost. c. marginal revenue is increasing. d. price is less than marginal revenue.
Summarize how the law of demand explains the effects of price on the quantity demanded
What will be an ideal response?
Economic rent directs resources to
A. labor-intensive industries only. B. people only. C. the people who can use them most efficiently. D. large corporations.