If the rental rate increases, we know that output and labor input will fall in the long run.
Answer the following statement true (T) or false (F)
False
Rationale: We know for sure that output will fall -- but labor input might fall or rise. (See Graph 13.8 in the text.)
You might also like to view...
A low rate of expected inflation tends to lead to a ________ rate of actual inflation and a high rate of expected inflation tends to lead to a ________ rate of actual inflation.
A. low; high B. low; low C. high; low D. high; high
If a firm wants to buy a piece of capital equipment, is this firm a demander or supplier in the financial market?
What will be an ideal response?
National income accounting fills in the dollar values in the circular flow of income
a. True b. False Indicate whether the statement is true or false
Differences in marginal revenue products among workers can help explain the presence of wage differentials
a. True b. False