An adverse supply shock with a vertical supply of labor curve will
A) raise the price level and leave unemployment unchanged.
B) raise unemployment and lower the price level.
C) raise both unemployment and the price level.
D) lower both unemployment and the price level.
A
Economics
You might also like to view...
In the basic two-period model,
A) credit markets have frictions. B) the government borrows at a lower interest rate than do consumers. C) some consumers will always default on their debts. D) consumers do not default on their debts.
Economics
Compared to the distribution of money income, the distribution of income that takes into consideration the effects of taxes and in-kind benefits
a. is less even b. is the same c. is more even d. is fairer e. is less fair
Economics