A firm hires labor up to the point where the
A) real wage rate equals the nominal wage rate.
B) real wage rate exceeds the nominal wage rate.
C) additional hour of labor produces extra output that equals the real wage rate.
D) additional hour of labor produces extra output that equals the nominal wage rate.
E) firm can sell the extra output.
C
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Over the most recent movements from cyclical peak to trough, 1990: Q3 to 1991: Q2, gross private domestic investment ________ approximately ________ percent
A) fell, 40 B) rose, 5 C) fell, 11 D) rose, 22
If investment in capital equipment requires two to three years between conceptualization and start-up to production, then
A) the gap between the desired capital stock and the existing capital stocks is closed slowly. B) a change in expected sales will not increase output. C) V* will be smaller than expected. D) All of the above are correct.
Heavy advertising expenditures usually indicate
a. oligopoly. b. pure competition or monopolistic competition. c. oligopoly or monopoly. d. differentiated pure competition or monopoly.
Which of the following would lead to a decrease in bond demand?
A. An increase in wealth. B. A decrease in liquidity. C. A decrease in risk. D. An increase in expected inflation.