According to new classical model, real wages
a. rise when income rises.
b. falls when income rises.
c. do not move within income.
d. fall if the expected price level is too high and rise if the expected price level is too low.
e. none of the above.
B
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small
Indicate whether the statement is true or false
The thesis of racial inferiority is rather recent
Indicate whether the statement is true or false
Which of the following events would lead to an increase in the supply of labor?
a. The price of a firm's product increases. b. A country experiences an increase in immigrant labor. c. The development of a new labor-augmenting technology. d. All of the above are correct.