If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the
A) quantity of labor demanded will decrease.
B) quantity of labor demanded will increase.
C) quantity of labor demanded does not change because there is no change in the real wage rate.
D) real wage rate increases.
B
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All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism?
A) Free trade reduces employment by driving domestic firms out of business. B) Free trade leads to higher prices for imported goods. C) Trade restrictions are necessary to protect new firms until they can gain experience and become more productive. D) A country should not rely on other countries for goods that are critical to its national defense.
Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
The Mokyr-DeCanio thesis states that real wages of Northern workers lagged behind price increases during the Civil War (1861–1865), thus shifting to the workers themselves a major part of the war's cost
Indicate whether the statement is true or false
The above figure shows the demand curve for crude oil. The demand curve has unitary price elasticity when price equals
A) $0. B) $1. C) $10. D) $20.