Refer to the graphs shown.
If product demand increases from D1 to D2, causing the product price to increase, firm A (a supplier of this product) will:
A. decrease employment because its MRP curve will shift leftward.
B. pay a lower wage rate and increase employment from q3 to q4.
C. increase employment because its MRP curve will shift rightward.
D. pay a higher wage rate and reduce employment from q2 to q1.
Answer: C
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An increase in the aggregate demand curve will, in the short run, change:
A. output but not price level. B. both output and the price level. C. the price level but not output. D. neither output nor the price level.
The ________ of R dollars to be paid in t years is the amount you have to put aside now if you want to ensure that you end up with R dollars t years from now.
A. present actual value B. present discounted value C. future discounted value D. investment value
Which of the following is not a component of the M1 money supply?
a. Demand deposits. b. Large-denomination (more than $100) bills. c. Interest-earning checking deposits. d. Outstanding balances on credit cards.
In time series regressions, it is advisable to check for serial correlation first, before checking for heteroskedasticity.
Answer the following statement true (T) or false (F)