How does technological advance affect the demand for labor?
Technological advance typically raises the marginal product of labor, which in turn increases the demand for labor and shifts the labor-demand curve to the right.
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The multiplier that arises from equal increases in government spending and taxes is called the
A) balanced budget multiplier. B) simple multiplier. C) tax multiplier. D) government spending multiplier.
Assume a government likes a particular equilibrium along the contract curve. It can achieve that equilibrium through competition and income redistribution
What will be an ideal response?
A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor supplied in the latter. B. decreasing the quantity of labor supplied in the latter. C. increasing the quantity of labor demanded in the latter. D. decreasing the quantity of labor demanded in the latter.
How sensitive is the structural deficit to the state of the economy?
a. It is insensitive to the state of the economy. b. The structural deficit changes cyclically with the economy. c. Changes in the structural deficit trigger opposite swings in the economy. d. The structural deficit changes countercyclically with the economy.