Suppose the demand for hamburgers increases. In the short run, firms that produce hamburgers will experience a rise in prices, which will induce them to:
A. decrease production and decrease the number of workers.
B. increase production and increase the number of workers.
C. decrease production and increase the number of workers.
D. increase production and decrease the number of workers.
Answer: B
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Because the personal income tax is an automatic stabilizer,
a. inflationary gaps are impossible. b. the budget deficit grows during a recession. c. the deficit needed to cure a recessionary gap increases. d. the structural deficit grows during a recession. e. All of the above are correct.
If we focus only on consistency, it is necessarily better to use IV than OLS if the correlation between z and u is smaller than that between x and u.
Answer the following statement true (T) or false (F)
moral hazard
What will be an ideal response?
Which of the following may shift the labor supply curve?
A. an increase in the value people place on their time B. an increase in the wage rate C. an increase in the corporate tax rate D. an increase in the price of the output of the firm