A free training and skill-building workshop conducted by an NGO increases the productivity of the labor force of a particular locality. Which of the following correctly describes the impact of the workshop on the labor market?
a. The labor supply curve becomes vertical.
b. The equilibrium wage rate declines
c. The labor demand curve shifts to the right.
d. The labor supply curve shifts to the left.
c
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Suppose the price level decreases and real GDP remains the same. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a seventh employee adds:
A. 255 hats to total production.
B. 25 hats to total production.
C. 20 hats to total production.
D. 275 hats to total production.
In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans. They extended many of these loans in the early 1970s when inflation was low. Were the savings and loans winners or losers as inflation skyrocketed in the late 1970s?
In recent years, a monetary growth rule has fallen out of favor because
A) it is believed that active monetary policy destabilizes the economy and makes the business cycle worse. B) the growth rate of GDP has been highly unstable. C) the close relationship between movements in M1 and movements in real GDP has become weaker. D) the growth rate of M1 has become more stable.