In the classical macroeconomic model, a decrease in the real wage would cause
a. a decrease in the marginal product of labor and an increase in the quantity demanded for labor.
b. an increase in the marginal product of labor and an increase in the quantity demanded for labor.
c. no change in the quantity demanded for labor.
d. an increase in both the supply of and demand for labor.
A
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To find the market demand curve for in-line skates, we must
A) add the quantities demanded at every price and every income by every buyer of in-line skates. B) add the quantities demanded at prices that all buyers can afford to pay. C) take account of the skate buying plans of all actual and potential buyers in all possible situations. D) sum horizontally the individual demand curves of all the buyers. E) None of the above answers is correct because we need also to take account of the supply of in-line skates.
Which of the following is NOT a common characteristic of a developing country?
A) extensive direct government control of the economy B) history of low inflation C) many weak credit institutions D) "pegged" exchange rates E) Agricultural commodities make up a large share of its exports.
The motives of accountants and their clients are not free of conflicts
Indicate whether the statement is true or false
Data on annual percentage changes in real GDP, consumption, and investment in the United States shows that fluctuations in investment _____
a. are noticeably smaller during expansions than during recessions b. are roughly similar to fluctuations in consumption c. are roughly similar to fluctuations in GDP d. are closely followed by economic forecasters because those fluctuations often signal that a recession will occur e. account for most of the variability in GDP