A 10 percent increase in the wage rate induces firms in an industry to reduce quantity demanded for labor by 5 percent in the first year. Five years later we would expect, other things constant,
A) the reduction in the quantity demanded of labor to be much greater than 5 percent.
B) the reduction in the quantity demanded of labor to be less than 5 percent.
C) the reduction in the quantity demanded of labor to be about 5 percent.
D) the quantity demanded of labor to be back to its original level.
Answer: A
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By driving up interest rates, an increase in investment spending causes
a. a voluntary decrease in consumption b. a voluntary increase in consumption c. an involuntary decrease in consumption d. an involuntary increase in consumption e. government spending to be crowded out
In which one of these years was the U.S. poverty rate the lowest?
A. 1960 B. 1964 C. 1973 D. 1983
If extraction technology continues to improve over time,
A) the price of crude oil can continue to fall or stay steady. B) the price of crude oil will increase despite any attempts to stem demand. C) the price of crude oil will only fall if sufficient government taxation is implemented. D) the price of crude oil will only fall if sufficient demand declines are arranged.
External financing allows the economy to consume beyond its production possibilities temporarily.
Answer the following statement true (T) or false (F)