A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels.
B. decrease.
C. increase.
D. increase only if the level of unemployment is high.
B. decrease.
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If a country's working-age population increases and its wealth increases, then the labor supply curve
A) shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population. B) shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. C) shifts to the left. D) shifts to the right.
A sandwich shop has six months left on its lease to its storefront and equipment and currently employs three workers who work on an on-call basis, with no contract. Ingredients are bought daily. How long is the long run for the sandwich shop?
A. The long and short run are the same in this case B. Six months, after which all inputs listed become variable C. A year, the typical term for long run, as there is nothing unusual about this business D. None of these is true.