A firm's demand for labor depends on the
A) nominal wage rate because it pays workers in dollars.
B) real wage rate, which equals the nominal wage divided by the price level.
C) real wage rate, which equals the nominal wage divided by the hours worked.
D) nominal wage rate, which equals the real wage divided by the price level.
E) supply of labor.
B
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Indicate whether the statement is true or false
By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's gross investment
A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.