Which of the following would cause the labor demand curve to shift to the right?
A. an increase in labor productivity
B. an increase in the price of a complimentary resource
C. a decrease in demand for the product the labor is used to produce
D. a decrease in output price
Answer: A
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Why must total income be identical to the dollar value of total output?
What will be an ideal response?
During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer
What will be an ideal response?
A permanent increase in the real wage rate has a ________ income effect on labor supply than a temporary increase in the real wage, so labor supply is ________ with a permanent wage increase than for a temporary wage increase
A) larger; more B) larger; less C) smaller; more D) smaller; less
The difference between the Baumol-Tobin formulation of the demand for money and the Keynesian-Baumol formulation is that
A) the speculative demand is a function of income. B) the transaction demand is a function of interest rates as well as income. C) the transaction demand is a function of wealth. D) Both B and C are correct.