If the number of employed people decreases and the average hours worked per week increases, then
Answer: there is an indeterminate effect on aggregate hours worked.
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The impact lag is the time between
A) a change in the money supply and a change in interest rates. B) a change in the money supply and a change in GDP. C) the use of a Federal Reserve tool and its effect on GDP. D) the use of a Federal Reserve tool and its effect on the money supply.
Suppose the government pursues expansionary fiscal policy by lowering taxes. What are the expected demand-side effects? What are the possible offsets to the demand-side effect? How might supply-side effects change these results?
What will be an ideal response?
The ability to produce a good at a lower opportunity cost than others is known as
A) comparative advantage. B) absolute advantage. C) specialization. D) marginal cost production.
Which of the following is a justification for transfer payments?
a) transfers can create a more ethically acceptable income distribution b) income redistribution provides insurance against misfortune c) poverty creates negative externalities such as crime and disease d) myopic individuals make time-inconsistent saving decisions e) all of the above