How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?
A fall in the money wage rate lowers firms' costs and shifts the aggregate supply curve rightward.
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Gary has won a laptop in an online auction. This implies that Gary's willingness to pay for the laptop was ________
A) higher than its market price B) lower than its market price C) higher than that of the other bidders D) lower than that of at least one bidder
When someone tells you they made $17,000 in 1970:
A. it is difficult to tell from that number if the person was well off or not, because prices have changed so much since then. B. the income should be adjusted into current dollars to clearly understand what that salary is "worth" in terms of purchasing power. C. it is a nominal figure that is hard to understand. A real figure would be more helpful. D. All of these statements are true.
Net capital outflow (NCO) is:
A. capital inflow ? capital outflow. B. capital outflow ? capital inflow. C. foreign dollars invested domestically. D. domestic dollars invested internationally.
A decrease in the quantity of labor supplied in response to a higher wage would be due to the:
A. price effect. B. tax effect. C. substitution effect. D. income effect.