An increase in physical capital or a technological advance
A) raises the real wage rate.
B) decreases the quantity of labor employed.
C) shifts the production function downward.
D) decreases demand for labor.
A
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A price below the equilibrium price results in
A) a surplus. B) a shortage. C) excess supply. D) a further price fall.
In the futures market, the difference between the price of the futures and the underlying asset is eliminated by
A) speculators. B) hedgers. C) arbitrageurs. D) longs.
If output begins to grow substantially faster than capital and labor inputs, then the real business cycle model predicts, ceteris paribus, ________
A) an increase in inflation B) a decrease in employment C) a decrease in investment D) a business cycle expansion
Which of the following goods is likely to have the highest income elasticity?
A) a designer blouse B) tomato soup C) hamburger D) can of tuna