In the RBC model, an adverse supply shock causes the decrease in natural real GDP to be minimized when the labor supply curve is
A) downward sloping and extremely flat.
B) upward-sloping and extremely flat.
C) upward-sloping and extremely steep.
D) vertical.
D
You might also like to view...
The example of the VCRs from Korea illustrates dumping due to
A) retaliatory trade practices. B) predatory pricing. C) avoidance of environmental laws. D) price discrimination.
As of the end of 1994 the country in our survey with the smallest stock market in dollar terms was
A) the United States. B) the United Kingdom. C) Japan. D) Germany.
The demand for sirloin steak is probably more elastic than the demand for all meat because
A) steak is very expensive. B) people are worried about cholesterol. C) cattle raising is not very profitable. D) there are more substitutes for sirloin steak than for all meats.
Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace doilies. If his revenue from the sale of these doilies is $50,000 and his materials cost $20,000 . then his economic profit is
a. $5,000 b. $25,000 c. $30,000 d. $50,000 e. $80,000