Gordon notes that along with slow labor productivity growth in the period 1973-1995, real wages also grew slowly
What sort of productivity shocks are consistent with this explanation of the link between real wage growth and the growth of labor productivity? A) productivity shocks which decrease supply of labor given the demand for labor
B) productivity shocks which increase supply of labor given the demand for labor
C) productivity shocks which increase demand for labor given the supply of labor
D) productivity shocks which decrease demand for labor given the supply of labor
D
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Refer to Edgeworth Box Economy. In an Edgeworth box, a point where two indifference curves are tangent represents
a. the initial endowment point. b. an allocation that both consumers prefer to the initial endowment. c. a competitive equilibrium. d. a Pareto-optimal allocation of goods.
Since 1960, out-of-pocket spending on health care has increased sharply as a fraction of all health care spending
Indicate whether the statement is true or false
If the money rate of interest is 12 percent and the real rate of interest 7 percent, the inflationary premium is
a. 5 percent. b. 7 percent. c. 12 percent. d. 19 percent.
Mary wants to open her own taco stand. Which of the following will probably happen?
a. She will start up her business in a year because she has to wait to get government approval. b. She will start up her business in a month because of low cost and ease of entry. c. She will take six months to start her business because of all the government certificates she has to get. d. She will take three months to start her business because she has to borrow to pay start-up fees.