Refer to the scenario above. If the economy is currently on F2 and produces Y3 level of output, a leftward shift of the labor demand curve with no change in productivity will cause output to ________
A) increase from Y3 to Y4 B) decline from Y3 to Y1
C) decline from Y3 to Y2 D) increase from Y3 to Y5
C
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According to the permanent income hypothesis, consumption spending depends largely on ________
A) current income B) the savings rate C) a consumer's lifetime resources D) the level of current income plus the value of the assets owned by the household
What is the maximum amount an investor should be willing to pay for a two-year $200 annuity, if the best alternative investment earns 20 percent per annum?
a. $305.56 b. $166.67 c. $138.89 d. $268.79
Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True b. False Indicate whether the statement is true or false
If the people thought that many banks in a certain country were at or near the point of bankruptcy, then that country's real exchange rate
a. and net exports would rise. b. would rise and its net exports would fall. c. would fall and its net exports would rise. d. and its net exports would fall.