When the economy swings back toward the boom part of a business cycle which of the following will generally not occur?
A. Labor demand will increase.
B. Cyclical unemployment will decrease.
C. Actual wages will approach the market-clearing level.
D. Labor supply will decrease.
D. Labor supply will decrease.
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Refer to Figure 3-4. At a price of $25, how many units will be supplied?
A) 400 B) 500 C) 600 D) 800
Wage decreases lead to a decrease in aggregate quantity supplied
a. True b. False Indicate whether the statement is true or false
If the market demand decreases for a good sold in a perfectly competitive market, firms in the market:
A. will be able to charge a higher price for their product. B. will receive a lower price for their product. C. will not be able to change their price. D. will not be affected by the change in demand.
If a country has a current account surplus, it also has
A. an increase in its official reserve assets. B. a financial account surplus. C. an increase in its holding of net foreign assets. D. a balance of payments deficit.