If the money prices of resources changes, the LAS curve shifts
Indicate whether the statement is true or false
FALSE
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Two variables are independent if as one variable __________, the other variable __________
A) rises; rises. B) falls; falls. C) rises; falls. D) changes; does not change.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
A) there will be a decrease in the demand for dollars in foreign exchange markets. B) there will be no change in the demand for dollars in foreign exchange markets but there will be an increase in demand for foreign currency. C) the dollar will appreciate. D) the dollar will depreciate.
If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A firm operating in a purely competitive labor market has the following marginal revenue product schedule.
A. 5 workers
B. 4 workers
C. 3 workers
D. 2 workers