If a country's working-age population increases and its wealth increases, then the labor supply curve
A. shifts to the right.
B. shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
C. shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
D. shifts to the left.
Answer: C
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In an economy where planned aggregate spending is given by PAE = 3,000 + .75Y ? 10,000r, the central bank is currently setting the interest rate at 0.05 (5 percent). If potential output equals 10,800, the central bank must ________ the interest rate to close the ________ gap.
A. raise; recessionary B. raise; expansionary C. lower; expansionary D. lower; recessionary
If a monopsony finds that its MRP is greater than its MFC, it:
a. is doing the right thing to maximize profits. b. should hire fewer workers to increase profits. c. should hire more workers to increase profits. d. should pay the workers a lower wage. e. should produce less output.
Which of the following is not an example of signaling?
a. screening b. advertising c. getting an education d. gift giving
What are the economic functions of depository institutions?
What will be an ideal response?