By the theory of intertemporal substitution of labor, a higher current real interest rate ________ the amount of labor ________ at each real wage rate in the current period
A) raises, demanded
B) raises, supplied
C) lowers, demanded
D) lowers, supplied
B
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What is an economic model?
A) It is a simplified version of some aspect of economic life used to analyze an economic issue. B) It is a description of an economic issue that includes all possible related information. C) It is a detailed version of some aspect of economic life used to analyze an economic issue. D) It is a description of an economic issue based on official government information.
Refer to Figure 17-5 to answer the following questions
a. What is the equilibrium quantity of firefighters hired, and what is the equilibrium wage? b. What is the equilibrium quantity of paralegals hired, and what is the equilibrium wage? c. Explain why firefighters might earn a higher weekly wage than paralegals. d. Suppose that comparable worth legislation is passed, and the government requires that firefighters and paralegals be paid the same wage, $800 per week. Now how many firefighters will be hired and how many paralegals will be hired?
For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false
Refer to the figure below. What would be the impact on the three categories of people if they were given the value of medical insurance in cash instead of having it provided?
