If the demand for labor ________, real wages fall and the amount of labor employed ________
A) increases; increases B) increases; decreases
C) decreases; increases D) decreases; decreases
D
You might also like to view...
Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did
As a result, the price of a PC ________ and the quantity of PCs sold ________. A) rose; decreased B) rose; increased C) fell; decreased D) fell; increased
Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage may rise or fall, depending on the unemployment rate. B) Gretchen's real wage will rise. C) Gretchen's real wage will fall. D) Gretchen's real wage will be unchanged.
How are economic theories like a road map?
a. They both ignore irrelevant details. b. They both are constantly used by economists. c. They both refer to important geographic locations. d. They both reflect the world precisely.
The classical theory predicts that an increase in the supply of savings will
A. lower interest rates and reduce investment. B. lower interest rates and expand investment. C. raise interest rates and reduce investment. D. raise interest rates and expand investment.