In a competitive labor market, if the supply of labor decreases, wages will:
A. increase.
B. decrease.
C. remain the same.
D. drop to zero.
A. increase.
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The concept that suggests that given the available inputs and technology, it is impossible to produce more of one good without decreasing the quantity that is produced of another good is:
a. the law of supply. b. balanced production. c. productive efficiency. d. effective demand.
In the equation of exchange, GDP divided by the money supply is equal to
A) M. B) V. C) P. D) Q.
Antony's Pizza uses the same dough, sauce, and cheese for pizza and calzones. When the price of pizza is low Antony produces more calzones. For Antony, the supply of pizza is ________ compared to the supply at a pizza restaurant that does not serve calzones.
A. less price elastic B. more price elastic C. lower D. higher