The labor supply shock hypothesis suggests that
A) the United States and Europe are following similar labor market policies.
B) there is a one-way causation from labor productivity to real wage growth.
C) slow real wage growth and slow productivity growth are simultaneously determined by the labor market system.
D) B and C.
E) none of the above.
C
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Suppose that each of 8,000 firms in a perfectly competitive industry produces 1,000 units of a good and maximizes profits when the price of the good is $10
If there is a permanent increase in demand, in the short run each firm produces ________ 1,000 units and in the long run the number of firms is ________ 8,000. A) more than; more than B) less than; more than C) less than; less than D) more than; less than E) exactly; more than
If a good is quasilinear, its own-price demand curve is vertical.
Answer the following statement true (T) or false (F)
If the purchasing power of a dollar is less than the purchasing power of the euro, purchasing power parity would predict that
A) in the long run, interest rates will move to equalize the purchasing power of the dollar and the euro. B) in the short run, interest rates will move to equalize the purchasing power of the dollar and the euro. C) in the short run, exchange rates will move to equalize the purchasing power of the dollar and the euro. D) in the long run, exchange rates will move to equalize the purchasing power of the dollar and the euro.
Goldin (2001) refers to the 20th century as the "human capital" century and credits education for the rise in overall income
Indicate whether the statement is true or false