Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 60 people employed; 20 people not in the labor force. How many people are unemployed?
A) 20
B) 40
C) 60
D) 80
E) 100
A
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Aggregate demand is _____________.
Fill in the blank(s) with the appropriate word(s).
You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour. If you were to employ one more hour of a repair person's services you would
A. increase your profit by $28. B. increase your profit by $18. C. increase your profit by $10. D. not increase your profit at all.
Which of the following will NOT increase the productivity of labor?
A. technological improvements B. an increase in the capital stock C. improvements in education D. an increase in the size of the labor force
In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will
A. leave wages unchanged since workers will not take a cut in pay. B. increase wages since business will be desperate for labor. C. decrease wages. D. change the price of capital.