Suppose both wages and employment decrease. These changes most likely were caused by:
A. an increase in the working age population.
B. a decline in business activity in the economy.
C. a decline in immigration.
D. an increase in emigration.
Answer: B
You might also like to view...
In a Malthusian world, what event would improve temporarily the standard of living, as measured by output per capita?
A) a peace keeping mission B) an increase in violent crime C) a new mutation of germs D) a new sewer system
If the marginal propensity to consume is 0.6, what is the value of the expenditure multiplier?
a. 1.0 b. 1.6 c. 2.0 d. 2.5 e. 6.0
When the long-run aggregate supply curve shifts right, it represents:
A. an unemployment rate of zero. B. economic growth. C. pushing our economy beyond normal capacity. D. negative inflation.
Short-run cost relationships for a firm are
A) determined by the law of diminishing marginal product. B) determined by the specific long-run relationships that exist. C) due to the level of wages relative to other input prices. D) due to the normal contractual relations in a market.