Suppose consumers and business decision makers become more optimistic about the future, and aggregate expenditures increase. The most likely result is that:
a. real GDP and employment and income to decline.
b. real GDP and employment rise.
c. real GDP rises and employment falls.
d. real GDP falls and employment rises.
b
Economics
You might also like to view...
An increase in the real wage rate will cause
A) the labor demand curve to shift to the right. B) the labor demand curve to shift to the left. C) the quantity of labor demanded to rise. D) a movement along the labor demand curve.
Economics
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.
Economics