Which of the following is most likely to occur in the labor market during a recession?
A. Bonuses and promotions become more frequent.
B. The growth rate of real wages declines.
C. The supply of labor increases dramatically.
D. New entrants to the labor market have an easier time finding jobs.
Answer: B
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A rise in the price level
A) raises the buying power of money. B) decreases the prices of exports. C) lowers the buying power of money. D) increases aggregate demand. E) makes the aggregate demand curve steeper.
Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager
What will be an ideal response?
If consumption increases in general the aggregate demand curve will:
A. shift straight down. B. shift to the right. C. remain unchanged but the economy will move down along the curve to a higher quantity. D. remain unchanged but the economy will move down along the curve to a lower quantity.
As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased. b. decreases because the prices of other resources have also decreased. c. increases because the prices of other resources have increased. d. decreases because the prices of other resources are held constant. e. remains constant because the prices of other resources also increase.