Assuming a 10-percent decrease in both the nominal (money) wage and the price level in the classical model, then the quantity of labor supplied will
a. also decrease by 10 percent.
b. increase by 10 percent.
c. remain constant.
d. decrease by less than 10 percent.
C
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The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________
A) area A; area B + area C + area E + area F B) area A + area B + area C; area E + area F C) area E + area F; area A D) area B + area C + area D; area E + area F E) area A + area B + area C + area D; area E + area F
The amount of a tax paid by the sellers will be larger the more ________ the demand and the more ________ the supply
A) elastic; inelastic B) inelastic; elastic C) inelastic; inelastic D) elastic; elastic
Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q. What is market demand if these demand curves are added horizontally? Vertically?
What will be an ideal response?
What is the present value of $1,000 received 3 years from now if the interest rate is 6%?
What will be an ideal response?