Assume that an economy is in equilibrium when the arrival of immigrants causes an increase in the supply of labor
Once the economy has adjusted to its new equilibrium, and assuming that the supply of capital remains unchanged, which of the following has decreased? A) the share of capital income in national income
B) the share of labor income in national income
C) national income
D) the rental price of capital
E) none of the above
E
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If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise
a. True b. False Indicate whether the statement is true or false
The economy is growing if and only if
A. real GDP is rising. B. GDP is rising. C. the average price level is rising. D. GDP per capita is rising.
In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.
The federal funds market:
A. is the borrowing by American banks from foreign lenders. B. is the term used for bank borrowing from the Federal Reserve System. C. is the lending to banks by the U.S. treasury when banks face liquidity emergencies. D. is the inter-bank market where excess reserves from one bank can be loaned to another bank.