Which of the following supply shocks would shift the aggregate supply curve inward?
What will be an ideal response?
Both workers and employers care more about the real wage than the nominal wage.
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Answer the following statement(s) true (T) or false (F)
1. A competitive firm's short-run demand for labor will rise when the price of its product rises. 2. Increased use of machinery always hurts workers by lowering the demand for their labor. 3. As the wage rate rises, the marginal revenue product of labor increases. 4. f labor and capital are complements in production, additions to capital will increase both the total and marginal products of labor. 5. When two factors are substitutes in production, an increase in the employment of one increases the marginal product of the other.
When comparing a single-price monopoly to a perfectly competitive market with the same costs
A) both the monopoly's output and price are lower than the perfectly competitive market's output and price. B) both the monopoly's output and price are higher than the perfectly competitive market's output and price. C) the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price. D) the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price.
On the graph above, an example of a positive demand shock is the movement from point ________ to point ________
A) F; G B) H; I C) F; H D) H; F E) none of the above
In ________ the United States Congress created the Federal Trade Commission.
A. 1787 B. 1890 C. 1914 D. 1950