The value of the marginal product of labor equals the marginal product of labor times the:
A. price of output.
B. real wage.
C. nominal wage.
D. quantity of labor.
Answer: A
You might also like to view...
Suppose the nominal interest rate is 1% and the rate of inflation is 3%. The real interest rate is therefore
A) -2%. B) 2%. C) 4%. D) 5%.
The expectations theory suggests that
A) the yield curve should usually be upward-sloping. B) the yield curve should usually be downward-sloping. C) the slope of the yield curve depends on the expected future path of short-term rates. D) the slope of the yield curve reflects the risk premium incorporated into the yields on long-term bonds.
In Cost Calculations for Pizza Shack Company, if the fixed cost went up to $50, then at an hourly output of 6 Pizza Shack’s TC would ______ and its ATC would ______.
a. increase to $106; decrease to $8.15
b. increase to $106; increase to $17.67
c. decrease to $90.00; decrease to $15.00
d. increase to $186; increase to $31.00
An increase in investment demand for any given level of income and interest rates—due, for example, to more optimistic "animal spirits"—will, within the IS-LM framework, ______ output and ______ interest rates.
Fill in the blank(s) with the appropriate word(s).