The level of potential output in the United States increases as the
A) supply of labor decreases. B) demand for labor decreases.
C) supply of labor increases. D) stock of capital decreases.
C
You might also like to view...
Which of the following would increase disposable personal income?
A) a decrease in taxes paid B) a decrease in personal income C) a decrease in transfer payments received D) All of the above would increase disposable income.
In the short run, an increase in real GDP will
a. increase unit costs and increase the price level b. increase unit costs and decrease the price level c. decrease unit costs and decrease the price level d. decrease unit costs and increase the price level e. have no effect on unit costs or the price level
The equilibrium wage rate in an industry is determined by
A) finding where the market supply curve indicates that the substitution effect and income effect of a wage increase are offsetting. B) the intersection of the market demand curve for labor and the market supply curve for labor. C) the strength of the substitution effect relative to the elasticity of demand for labor. D) whether workers or management are better at negotiating.
The balanced-budget multiplier always equals 1.
Answer the following statement true (T) or false (F)