If the price level rises faster than the money wage rate, the real wage rate falls
Indicate whether the statement is true or false
TRUE
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How is the market demand curve for new capital derived?
What will be an ideal response?
Which of the following is NOT a contributing factor into why the HPAE were able to rapidly accumulate physical and human capital?
A) A stable macroeconomic environment meant low inflation B) Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks C) The demographic transition meant that the proportion of their population working was higher. D) A rapid rise in income made greater amounts of savings possible.
The long-run aggregate supply curve would shift right if the government were to
a. reduce the minimum-wage. b. make unemployment benefits more generous. c. raise taxes on investment spending. d. All of the above are correct.
The long-run aggregate supply curve represents the level of output possible if the economy:
A. has a zero inflation rate. B. has no structural unemployment. C. is operating at full capacity. D. is operating at an unemployment rate of zero.