An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor
It would also indirectly ________ average labor productivity through changes in the level of employment. A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
C
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When the economy is in a recessionary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________
A) shortage; rise; AD; rightward B) shortage; fall; SRAS; leftward C) surplus; rise; AD; rightward D) shortage; fall; SRAS; rightward E) surplus; fall; SRAS; rightward
The difference between asymmetric and symmetric shocks is that:
A) the former results in no conflicts in policy goals between countries. B) the latter results in policy conflicts between countries. C) the latter results in identical policies being implemented. D) the former is favored over the latter.
If the population doubles in size, what can be expected to happen to the market for automobiles?
a. Automobile manufacturers will decrease supply. b. The price of automobiles will decrease. c. More automobiles will be sold at any given price. d. People will use fewer automobiles. e. None of these.
The World Bank formed the World Trade Organization when it became clear that to alleviate poverty in developing nations, agricultural trade barriers were going to have to be reduced
Indicate whether the statement is true or false