The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) rightward shift of the supply of labor curve.
B) movement downward along the supply of labor curve from a point such as A to a point such as B.
C) leftward shift of the supply of labor curve.
D) movement upward along the supply of labor curve from a point such as C to a point such as B.
E) None of the above answers is correct because there is no change in the supply of labor curve.
E
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The opportunity cost of money is:
A. the price level. B. the time spent going to the bank to withdraw funds. C. the nominal interest rate. D. the fees charged by banks to provide checking services.
What are three reasons that the interest-rate parity condition may not always hold?
What will be an ideal response?
Which statement about democratic countries is true?
a. They can boost their economic growth by pursuing sound policies. b. They will become authoritarian if their economic growth declines. c. They enjoy consistent economic growth under most circumstances. d. They struggle to achieve meaningful economic growth.
As one moves down a straight-line, down-sloping demand curve, price elasticity will:
A. change from elastic, to unit elastic, then to inelastic. B. remain the same between any two points. C. change from inelastic, to elastic, then to unit elastic. D. change from unit elastic, to elastic, then to inelastic.