Suppose labor supply declined. Would this affect the aggregate demand curve or the aggregate supply curve? What would be the effect on output and the price level?
What will be an ideal response?
The decline in the labor supply shifts the long-run aggregate supply curve to the left, causing the price level to increase and output to decline.
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When the labor market is in equilibrium, real GDP ________ potential GDP
A) is greater than B) is equal to C) is less than D) might be greater than, less than, or equal to E) is not comparable to
Refer to the payoff matrix above. Which of the following is true for Campers R Us?
A) They have two dominated strategies.
B) They have zero dominated strategies.
C) They have three dominated strategies.
D) They have one dominated strategy.
The phrase "a stronger U.S. dollar" means that the dollar
a. is in equilibrium on the foreign exchange market b. does not fluctuate greatly c. has been depreciating d. has been appreciating e. buys more than one unit of a foreign currency
If Karen gets up early and studies three hours for her test, she is likely to get an A. If she sleeps in, she will probably get a C. What is the opportunity cost of sleeping in?
(A) Three additional hours of study. (B) a C. (C) An A. (D) Three additional hours of sleep.