A short-run decrease in real GDP will
a. increase the price of non-labor inputs, increase input requirements per unit of output, and increase the price level
b. increase the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level
c. decrease the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level
d. increase the price of non-labor inputs, decrease input requirements per unit of output, and increase the price level
e. decrease the price of non-labor inputs, increase input requirements per unit of output, and increase the price level
C
You might also like to view...
Which of the following is not an example of a capital input? a. A person's skills and abilities, which can be employed to produce valuable goods and services. b. Factories and offices where goods and services are produced
c. Tools and equipment. d. Computers used by a company to record inventory, sales, and payroll.
Which of the following is true of International Banking Facilities (IBFs) in the U.S.?
a. IBFs were legalized by the Federal Reserve Board in 1970. b. IBFs are bookkeeping systems set up in existing bank offices of the U.S. to record international banking transactions c. IBFs are "shell" bank branches of U.S. banks in the Caribbean. d. Loans extended by the IBFs are subject to reserve requirements and interest rate regulations. e. IBFs are allowed to extend loans to the residents and businesses of the United States and not to the nonresidents.
An exchange rate regime in which the government may change the fixed rate in the face of a significant disequilibrium in the country's international position is called a(n)
A. managed float. B. adjustable peg. C. crawling pegged exchange rate. D. currency board.
Suppose that taxes on labor are increased by 10 percent and workers respond by working 2 percent fewer hours. It can be said that
A. The tax elasticity of the labor supply is 5. B. The labor supply is elastic. C. Employers will face lower unit costs for each worker hired. D. The tax elasticity of the labor supply is 0.2.