Which answer below CORRECTLY describes the relationship between the demand for labor curve and the value of marginal product curve?
A) The curves intersect to determine the equilibrium quantity of labor.
B) The value of marginal product curve lies to the right and above the demand for labor curve.
C) The curves are the same.
D) The value of marginal product curve lies to the left of the demand for labor curve.
C
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Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would tend to cause the labor supply curve for citrus pickers to
A) shift to the left, causing the labor demand curve to shift to the left. B) remain unchanged, and the wage rate would tend to increase. C) shift to the right, causing the labor demand curve to shift to the right. D) remain unchanged, and the wage rate would tend to decrease.
Figure 10-2
In Figure 10-2, which segment of the aggregate supply curve has the largest multiplier effect?
a.
AB
b.
BC
c.
CD
d.
DG
U.S. imports are goods and services
A. produced abroad and sold to foreigners. B. produced in the United States and sold to Americans. C. produced in the United States and sold to foreigners. D. produced abroad and sold to Americans.
If the economy is represented in the graph shown and is currently at point E2, which action is the Fed most likely to undertake?
A. Expansionary monetary policy, because it will shift AD to the right.
B. Contractionary monetary policy, because it will shift AD to the left.
C. Expansionary monetary policy, because it will shift AD to the left.
D. Contractionary monetary policy, because it will shift AS to the right.