If the MRP of labor decreases, labor
a. demand will decrease
b. demand will increase
c. supply will increase
d. supply will decrease
e. demand and supply will be unaffected
A
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The world real interest rate is
A) set annually by a special commission at the United Nations. B) set annually by a special commission at the International Monetary Fund. C) determined in the international capital market. D) determined daily on the New York Stock Exchange.
The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is
a. to increase equilibrium price and quantity b. to decrease equilibrium price and quantity c. to increase equilibrium price and decrease equilibrium quantity d. to increase equilibrium quantity and decrease equilibrium price e. that equilibrium price and quantity remain constant
Monopolistically competitive firms can earn large profits in the long run.
Answer the following statement true (T) or false (F)
A higher real interest rate ________ investment spending and ________ consumption spending.
A. decreases; decreases B. decreases; increases C. increases; decreases D. increases; increases