As the price of a competitive firm's product rises, the firm's demand for labor also rises
a. True
b. False
Indicate whether the statement is true or false
True
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The law of demand states that a lower price increases the amount of a commodity that people are willing to buy.
Answer the following statement true (T) or false (F)
Why are changes in the output gap larger than changes in the unemployment gap? Why is the relationship expressed in Okun's law not affected by inflation or expected inflation?
What will be an ideal response?
A perfectly competitive firm with a random demand has a ________ demand curve and ________ marginal revenue curve.
A) horizontal; horizontal B) vertical; horizontal C) vertical; vertical D) horizontal; vertical
In conducting quantitative easing, the Fed may decide to purchase mortgage securities to do all of the following EXCEPT:
A. affect long-term interest rates. B. influence average home prices. C. reduce interest rates on home purchases. D. increase the amount of bank reserves.