Innovation that increases the productivity of capital equipment will increase the demand for labor in the short run but decrease wages in the long run.
Answer the following statement true (T) or false (F)
False
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Refer to Figure 17-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by
A) an increase in the natural rate of unemployment from 5.5 to 6.8 percent. B) an increase in the expected inflation rate from 4.0 to 5.5 percent. C) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent. D) None of the above is correct.
Without changes in MC to maximize profits, the firm will produce at point ________ on the new demand curve and lower price to ________
A) E1; P1 B) E0; P0 C) E2; P2 D) E0 or E1; P0
Which of the following is false?
A) Even if a corporation is not currently issuing bonds, you could still buy a bond directly from the corporation. B) Bonds that are rated AAA from Standard and Poor's have received the highest rating possible. C) A bond that is rated in the D category indicates that the bond issuer cannot pay off the bond. D) It is possible to buy a bond from someone who purchased and still holds the bond he bought from the corporation at an earlier date.
Refer to the table shown. From this table we can conclude that:Cost (in euros) of producing wine and an electric generator FranceGermanyWine1020Electric Generator10,00030,000
A. Germany has a comparative advantage in wine and France has a comparative advantage in electric generators. B. France has a comparative advantage in wine and Germany has a comparative advantage in electric generators. C. France has a comparative advantage in both goods. D. Germany has a comparative advantage in both goods.