The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate if
A. the demand for labor decreases.
B. the supply of labor decreases.
C. the supply of labor increases.
D. the demand for labor increases.
Answer: B
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Which of the following statements about a monopoly is FALSE?
A) Monopolies have no barriers to entry or exit. B) The good produced by a monopoly has no close substitutes. C) A monopoly is the only producer of the good. D) None of the above; that is, all of the above answers are true statements about a monopoly.
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is aggregate expenditure?
A) $15 million B) $23 million C) $25 million D) $27 million
Which aspect of macroeconomics generates the most controversy?
A) economic growth B) the causes of business cycles C) supply and demand D) competitive equilibrium
Explain how corporate profits are taxed twice
What will be an ideal response?