The substitution effect and the output effect
A. work in the same direction.
B. work in opposite directions.
C. are independent of one another, having nothing in common.
D. None of these choices are correct.
B. work in opposite directions.
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The supply curve of truck drivers is upward sloping and demand curve is downward sloping. A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed
a. decrease; decrease b. decrease; increase c. increase; decrease d. increase; increase
The cost of child care in a city declines during two subsequent quarters in a year. Which of the following changes is likely to be observed in the labor market on account of this trend? a. The quantity supplied of labor will decrease
b. The quantity of labor demanded will decrease. c. The labor supply curve will shift to the right. d. The demand for labor curve will shift to the left.
The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save? B) What is the efficiency wage model? C) What does consumption equal if the economy is in equilibrium? D) What is the multiplier? E) What does disposable income equal if the economy is in equilibrium?
Graphically short-run equilibrium occurs at the intersection of the aggregate demand curve and the:
A. short-run aggregate supply line and the long-run aggregate supply line. B. the aggregate expenditure line. C. long-run aggregate supply line. D. short-run aggregate supply line.