The labor-force participation rate equals the percentage of the labor force that is employed
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Use the following graph to answer the next question.
Which of these lines represents the short- run aggregate supply curve?
A. 1 B. 2 C. 3 D. 4
Part-time workers for noneconomic reasons are people who
A) work less than 35 hours a week but would like to work more than 35 hours a week. B) work more than 35 hours a week but would like to work less than 35 hours a week. C) have lost their jobs within the last four weeks and are seeking another job. D) do not want to work full time. E) are discouraged workers.
Because efficiency wage theory deals with the consequences of a change in a firm's ________ wage, if all wages were indexed to nominal aggregate demand the theory would be ________
A) absolute, even more appropriate B) absolute, rendered inappropriate C) relative, even more appropriate D) relative, rendered inappropriate
Which of the following reasons helps explain why the aggregate demand curve is downward sloping?
a. The real balances effect or wealth effect: Consumers spend more on goods and services when the price level falls because lower prices increase consumer purchasing power. b. The producer-push effect: At less than full employment, increases in quantity demanded will raise price, and thus will motivate sellers to produce more. c. The hidden inflation effect: As the price level rises, consumers fail to recognize that prices are higher, and consequently they fail to reduce expenditures on goods and services. d. None of the above.