Why is the demand for labor downward sloping in the short run?
What will be an ideal response?
The demand for labor is its marginal revenue product. The marginal revenue product is marginal product times the price of output. Marginal product of labor and thus marginal revenue product is negatively sloped due to diminishing returns to labor.
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A. increase; weaker B. increase; stronger C. decrease; stronger D. decrease; weaker
If the Fed attempts to reach and maintain very low rates of unemployment, we would expect the rate of inflation to rise
Indicate whether the statement is true or false
Public finance economists should only concern themselves with positive economic analysis
a. True b. False
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A. income is unequally distributed. B. proportionately more of the nation's income is received by the highest 20 percent of families than by the lowest 20 percent. C. the income received by each 20 percent of families is 20 percent of the total income. D. proportionately more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.