A surplus of labor is eliminated by ________ in the real wage rate and a shortage of labor is eliminated by ________ in the real wage rate
A) an increase; a decrease
B) a decrease; an increase
C) an increase; an increase
D) a decrease; a decrease
E) None of the above answers is correct because shortages and surpluses are eliminated by changes in the demand for labor and the supply of labor, not the wage rate.
B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which of the following factors could start a demand-pull inflation?
A) an increase in the money wage rate B) an increase in tax rates C) a decrease in the money wage rate D) a decrease in government expenditure E) an increase in the quantity of money
Which is the best example of a nondiversifiable risk for Stalwart Shoes?
A) A project to open a new store in Texas B) A project to open a new factory in Texas C) A project to move into the sock market D) The state of the economy in Texas E) The state of the U.S. economy
In the market for oil in the short run, demand
a. and supply are both elastic. b. and supply are both inelastic. c. is elastic and supply is inelastic. d. is inelastic and supply is elastic.