If potential output exceeds actual output, the aggregate demand curve shifts downward over time
Indicate whether the statement is true or false
FALSE
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As the wage rate increases, ________, assuming all else equal
A) quantity supplied of labor increases. B) demand for labor increases. C) quantity demanded of labor increases. D) supply of labor increases.
What is the argument against the use of autonomous tightening of monetary policy in response to a credit-driven asset-price bubble?
What will be an ideal response?
As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor declines because
A) there are diseconomies of scale. B) less efficient workers are hired as the number of workers increase. C) workers don't perform well in teams. D) the amount of other inputs each worker has to work with declines as the number of workers increases.
Refer to Figure 1.7. Which of the following points are unattainable, ceteris paribus?
A. G. B. F. C. E. D. N.