In the above figure, what is the full-employment real wage rate and quantity of hours per year?
A) $40 and 60 billion hours per year
B) $50 and 100 billion hours per year
C) $35 and 100 billion hours per year
D) $50 and 40 billion hours per year
A
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If the marginal revenue product of an input is greater than its price, the
A. firm should decrease its use of the input to bring the two values into equality. B. firm should raise the price of the product. C. firm should increase the use of the input to bring the two values into equality. D. firm should search for another input to use in its production.
On the graph above, consider a point A at which output is greater than potential output. At this point, ________
A) the inflation rate will rise B) output will rise C) potential output will rise D) the aggregate demand curve will shift to the left E) none of the above
Reductions in available resources will cause the production possibilities curve to:
a. expand. b. disappear. c. become vertical. d. shift inward.
The vicious circle of poverty is the trap in which the LDC is too poor to save and therefore it cannot invest and remains poor
a. True b. False Indicate whether the statement is true or false