Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that:
A. the labor demand curve must have independently shifted to the right.
B. labor demand is highly elastic.
C. the coefficient of labor demand elasticity is less than 1.
D. labor demand is unit-elastic.
Answer: A
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Which of the following best describes the services provided by the Federal Reserve?
a. The Federal Reserve provides banking services to commercial banks and other depository institutions but does not provide banking services to the federal government. b. The Federal Reserve does not provide banking services to commercial banks and other depository institutions but provides banking services to the federal government. c. The Federal Reserve provides banking services to commercial banks and other depository institutions and provides banking services to the federal government. d. The Federal Reserve does not provide banking services to commercial banks and other depository institutions and does not provide banking services to the federal government.
Political instability is a deterrent to long-term private investment
Indicate whether the statement is true or false
If the Fed increases the money supply,
a. the interest rate increases, which tends to raise stock prices.
b. the interest rate increases, which tends to reduce stock prices.
c. the interest rate decreases, which tends to raise stock prices.
d. the interest rate decreases, which tends to reduce stock prices.
What other name does Professor Tabarrok give to the economy's long-run potential growth rate?
A. the equilibrium growth rate B. the Solow growth rate C. the factor growth rate D. the fundamental growth rate