One difficulty with any explanation of economic fluctuations based on a shift in labor supply is that
a. workers' preferences tend to change very quickly
b. labor supply shifts all the time without causing recessions or expansions
c. labor supply is difficult to measure
d. workers' preferences tend to change very slowly
e. the unemployment rate changes during economic fluctuations
D
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What is the free-rider problem, and how is it related to public goods?
What will be an ideal response?
What is the opportunity cost of 1 tractor in terms of automobiles for the U.S. and Japan, respectively?
A. 0.5 automobiles and 2 automobiles
B. 0.5 automobiles and 1 automobile
C. 2 automobiles and 1 automobile
D. 2 automobile and .25 automobiles
Suppose that a product benefits from a successful advertising campaign. The result is that:
A. the demand for the product increases. B. the demand for the product decreases. C. the supply of the product increases. D. the supply of the product decreases.
If the inflation rate is 5% and the real interest rate is 4%, then the nominal interest rate is around
A. 1%. B. -1%. C. 20%. D. 9%.