Monopolists in the labor market equate the marginal wage with the marginal revenue product to find the desired level of employment for a union.
Answer the following statement true (T) or false (F)
False
The intersection of the marginal wage and labor supply curves determines the union's desired employment.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The multiplier is larger if the
a) marginal propensity to consume is larger b) marginal propensity to save is larger c) income tax rate is higher d) marginal propensity to import is larger
An increase in productivity will cause which of the following according to the price-setting behavior of firms?
A) a reduction in prices set by firms B) an increase in the real wage paid by firms C) a reduction in the markup set by firms D) all of the above E) none of the above
How does a n increase in the contribution limits of Individual Retirement Accounts (IRA) is represented in the loanable funds model?
A) The supply of funds curve shifts to the left. B) The supply of funds curve shifts to the right. C) The demand for funds curve shifts to the left. D) The demand for funds curve shifts to the right.