If firms offer an efficiency wage:
a. the quantity of labor supplied will exceed the quantity of labor demanded.
b. the quantity of labor demanded will exceed the quantity of labor supplied.
c. the quantity of labor supplied will equal the quantity of labor demanded.
d. absenteeism is expected to increase.
a
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A major purchaser of corporate bonds is
A) state and local governments. B) money market mutual funds. C) pension and retirement funds. D) the Federal Reserve.
The new Keynesian economists argue that prices are relatively rigid because of
A) menu costs. B) overlapping staggered contracts. C) efficiency wages. D) All of the above.
If a demand curve is unit elastic, then P times Q will remain constant when P changes
a. True b. False Indicate whether the statement is true or false
Refer to the above diagram. If aggregate supply shifts from AS1 to AS3, then real domestic output will:
A. increase and the price level will increase. B. decrease and the price level will decrease. C. increase and the price level will decrease. D. decrease and the price level will increase.