In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Real loanable funds market, with a shift in the supply of real loanable funds
b. Real loanable funds market, with a shift in the demand for real loanable funds
c. Foreign exchange market, with a shift in the supply of domestic currency
d. Foreign exchange market, with a shift in the demand for domestic currency
e. Real goods market with, a shift in aggregate supply
.E
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The small town of Narberth has two pizza stores. Which of the following statements are CORRECT?
I. The profits of each store depend on the price of the pizza at the other store. II. Both stores would increase their profit if they cooperated in setting their prices. A) I only B) II only C) Both I and II D) Neither I nor II
In the fooling model, real wages
A) are countercyclical. B) are procyclical. C) are constant. D) show no clear cyclical pattern.
As countries that currently use the euro, what are the two ways that Spain and Greece could reduce the prices of their exports and of their domestic goods to remain competitive with their trading partners?
What will be an ideal response?
According to the classical model, workers chose a level of labor that equates the
a. real wage and marginal product of labor. b. nominal wage and marginal product of labor. c. the marginal utility of consumption and the marginal disutility of lost leisure. d. the marginal utility of consumption with the real wage.