Without any change in the supply of labor, how will shifts in the demand for labor affect equilibrium wage and employment?
What will be an ideal response?
Because the equilibrium wage and employment are determined at the point of intersection of the labor demand and supply curves, shifts in the demand curve affect these variables. A right shift in the demand for labor, without any change in the supply of labor, will lead to higher wages and employment levels. On the other hand, a left shift in the demand for labor, without any change in the supply of labor, will lead to lower wages and employment levels.
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As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies, the money multiplier ________ as a direct result of the ________
A) fell from about 9 to about 4; low risk experienced by banks because of the FDIC increasing their default coverage amounts B) decreased drastically; consistent decrease in banks' desired reserve ratios as they took on less risk C) rose from about 4 to about 9; surge in banks' desired reserve ratios as they took on less risk D) rose drastically; consistent decrease in banks' desired reserve ratios as they took on less risk E) fell from about 9 to about 4; surge in banks' desired reserve ratios as they took on less risk
According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 115
B. 60
C. 150
D. 90
Which of the following items is funded by both the federal and state governments?
a. Medicare b. Medicaid c. Social Security d. Supplemental Security Income
Due to the private nature of bank ownership, there is often a difference between bankers’ goals and macroeconomic objectives.
Answer the following statement true (T) or false (F)