A price ceiling set above the equilibrium price is not binding
a. True
b. False
Indicate whether the statement is true or false
True
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The "interest rate effect" can be described as an increase in the price level that raises the interest rate and chokes off
A) investment and consumption spending. B) government spending. C) government spending and unplanned investment. D) net exports.
If the marginal physical product of labor increases with the addition of new workers, it's because
a. labor specialization raises labor productivity b. the new workers are hired at lower wage rates c. the law of diminishing returns applies to new workers d. the supply curve of labor is upward sloping e. of the low productivity of capital
What would be the likely result of a recessionary gap? If this leads to a fall in the nominal wage what impact it would have on the aggregate supply curve and on recessionary gap?
________ is considered to be the least mobile factor internationally.
A. Labor B. Land C. Capital D. Entrepreneurship