What is the investment demand curve?
What will be an ideal response?
The investment-demand curve shows the relationship between the real interest rate and the level of investment spending. The relationship is an inverse one—the lower the interest rate, the greater the investment spending which means that the investment-demand curve is down sloping. This curve can also be shifted by six factors that can change the expected rate of return on investment.
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The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $5.50 per hour?
A) unemployment equal to 400 hours B) unemployment equal to 200 hours C) a shortage of 400 hours D) nothing because the minimum wage has no effect on the equilibrium price and quantity
Just over 10% of workers age 25 years or older earned below $7 per hour in 2005
Indicate whether the statement is true or false
Both monopolistically and perfectly competitive firms earn only normal profits in the long run
a. True b. False Indicate whether the statement is true or false
An increase in the consumer sentiment index indicates that consumers are
a. becoming more optimistic about their future income and employment prospects. b. becoming less optimistic about their future income and employment prospects. c. expecting the inflation rate to rise in the near future. d. expecting the inflation rate to fall in the near future.