A decrease in the real wage rate
A) shifts the labor demand curve rightward.
B) shifts the labor demand curve leftward.
C) shifts the labor supply curve leftward.
D) none of the above because a change in the real wage rate does not shift either the labor demand or labor supply curve.
D
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If expectations are adaptive, how will the economy adjust to a new long-run equilibrium in response to contractionary monetary policy? Support your answer with a graph of the Phillips curve
What will be an ideal response?
According to non-Keynesians, how will an increase in government spending financed by borrowing during a recession affect recovery?
a. Higher future taxes and interest rates will be required to finance the larger debt and this will weaken the recovery. b. Repayment of the debt can always be shifted to the future, making it possible to keep tax rates low and thereby strengthen the recovery. c. Higher interest payments will increase future government spending, and thereby promote a stronger the recovery. d. The increase in government spending will exert a multiplier effect on the economy, leading to a stronger recovery.
Iggie took a university teaching job as an assistant professor in 1980 at a salary of $15,000 . By 2011, she had been promoted to full professor, with a salary of $70,000 . If the price index was 82 in 1980 and 225 in 2011, then what is Iggie's 2011 salary in 1980 dollars?
a. $25,511 b. $52,073 c. $40,140 d. $41,159
The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor
market experiences a A) shortage. B) quality decrease. C) surplus. D) excess demand.