Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67 . Then the equilibrium wage
a. and the equilibrium quantity of labor will rise.
b. and the equilibrium quantity of labor will fall.
c. will rise, and the equilibrium quantity of labor will fall.
d. will fall, and the equilibrium quantity of labor will rise.
c
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What are the two broad sources of potential GDP growth?
What will be an ideal response?
Suppose the United States imports coffee from Brazil. Which of the following is a likely impact of this trade? a. The owners of the land used to grow coffee in the United States will be worse off
b. The producers of coffee-flavored candies in the United States will face higher costs of production. c. The consumers of coffee in the United States will face a higher market price. d. The workers in coffee plantations in the United States will be better off.
An intended goal of contractionary fiscal policy and a tightening of monetary policy is
A. an increase in the price level. B. an increase in interest rates. C. a decrease in the level of aggregate output. D. a decrease in the unemployment rate.
Describe the probable impact of an increase in government spending assuming no change in taxes or private spending and less than full-employment output.
What will be an ideal response?