Which of the following happened during the Great Depression?
a. Unemployment and prices increased while output decreased.
b. Unemployment increased while output and prices decreased.
c. Unemployment and prices decreased while output increased.
d. Unemployment and output decreased while prices increased.
e. Unemployment and output increased while prices decreased.
b
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Changes in the demand for an industry's output are felt most by those factors that
a. are inelastically supplied. b. are paid the highest factor prices. c. earn relatively little economic rent. d. have a sizable number of alternative uses.
Which of the following is true of the quantity demanded of reserves?
A) The quantity demanded of reserves increases as the federal funds rate falls. B) The quantity demanded of reserves increases as the inflation rate increases. C) The quantity demanded of reserves is constant over time for almost every bank. D) The quantity demanded of reserves increases at a constant rate over time.
Which of the following shifts the short-run aggregate supply curve?
I. changes in the size of the labor force II. changes in the money wage rate A) I only B) II only C) both I and II D) neither I nor II
If the MRP per dollar is greater for labor than that for tools, a producer should spend more money on labor than originally planned and less on tools. How long can he continue this switch in spending? Why?
What will be an ideal response?