According to the real business cycle theory, the supply side shock from dramatic increases in oil prices in the 1970s led to higher unemployment because
A) when the real wage, W/P, fell, workers chose leisure.
B) when the real wage, W/P, rose, workers chose leisure.
C) workers increase Pe.
D) None of the above.
A
You might also like to view...
Jane is a 25 year old, full-time student. She works part time in her school library and is paid $7 an hour. She is considered to be
A) not in labor force. B) not in the working-age population because she is in college. C) employed. D) unemployed. E) in labor force but not working.
Zippy Car Wash on Main Street needs at least one worker to operate. That one worker can clean 10 cars in an hour. If a second worker is present, 18 cars can be washed per hour. With three workers, 25 cars can be washed per hour. With a full staff of four workers, 30 cars can be washed per hour. What is the marginal product for number of workers at Zippy Car Wash?
a. the total number of cars that can be washed with four workers b. the cost of wages and benefits for Zippy’s workers c. the optimal staffing level for the car wash d. the per worker change in the number of cars that can be washed per hour
Bank holding companies developed:
A. so foreign banks could open branches in the U.S. B. so that unit banks could combine into larger banks. C. to circumvent the regulation by the Office of the Comptroller of the Currency. D. to get around the limitations on bank branching.
Nominal output is the ________ of goods and services, and real output is the ________ of goods and services.
A. actual amount; dollar value B. dollar value; actual amount C. dollar value with inflation; dollar value D. actual amount; dollar value with inflation