A $500 increase in investment will shift the aggregate expenditures curve up by:
a. exactly $500 and will increase the equilibrium level of real GDP by exactly $500.
b. exactly $500 and will increase the equilibrium level of real GDP by less than $500.
c. exactly $500 and will increase the equilibrium level of real GDP by more than $500.
d. more than $500 and will increase the equilibrium level of real GDP by more than $500.
e. less than $500 and will increase the equilibrium level of real GDP by less than $500.
c
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The graph shows the labor market for apple pickers in Ohio. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed
A) 6,000 B) 8,000 C) 10,000 D) 14,000 E) more than 14,000
A difference between the classical and new classical models is that
a. classical economists assumed that labor suppliers knew the real wage, while the new classical economists assume they form a rational expectation of the real wage. b. classical economists assumed that the money wage was flexible while the new classical economists assume it was fixed. c. new classical models do not assume perfect competition. d. labor supply in the classical model is a function of the real wage while labor supply depends on the money wage in the new classical model. e. both a and c.
Relative to a franchisee, a manager of a company owned store is more likely to
a. Work very hard b. Not work as hard c. Work only evenings d. Work only night shifts
Refer to the following figure. The price of capital is $50 per unit:
The minimum cost of producing 800 units of output is
A. $10,000. B. $8,000. C. $7,500. D. $6,000.