The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function
B) an increase in the rental price of capital along with a healthy stock market response
C) a decline in real wages due to a downward shift of the MPL curve
D) an increase in the rental price of capital due to an upward shift of the production function
E) none of the above
C
You might also like to view...
The ________ is when society enforces property rights, contracts, and other rules based on an established set of laws.
A. rule of one B. rule of man C. rule of law D. rule of force
The individual demand curve for an input such as labor to a firm would be the downward sloping portion of the firm's
A) marginal physical product curve. B) marginal revenue product curve. C) marginal revenue curve. D) total revenue curve.
If a person predicts that a cut in income tax rates will decrease income tax revenues, he or she implicitly assumes that the percentage __________ in the tax base will be __________ the percentage cut in the tax rate
A) rise; less than B) rise; greater than C) rise; equal to D) fall; equal to E) none of the above
Suppose that only one curve shifts. If you observe that the equilibrium price increased while the equilibrium quantity decreased, then the market experienced a/an:
A. decrease in supply. B. increase in demand C. increase in supply. D. decrease in demand.