A temporary decrease in government purchases in the classical model would
A. shift the marginal product of labor curve to the right.
B. shift the labor demand curve to the left.
C. shift the labor supply curve to the left.
D. shift the production function to the left.
Answer: C
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An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on
A set of indifference curves that are only slightly bowed inward represent goods that could best be described as
a. perfect substitutes. b. perfect complements. c. very close substitutes. d. very close complements.
Refer to the graph shown. The short-run equilibrium output level for the monopolistically competitive firm represented is:
A. 900. B. 1,000. C. 500. D. 300.
What happens in the long run if firms in a monopolistically competitive industry are incurring economic losses? Explain
What will be an ideal response?