Which of the following is NOT a reason why natural GDP might fall as a result of a supply shock?
A) The production function shifts downward.
B) There might be a voluntary decline in the supply of labor in response to the decline in real wages.
C) The supply of labor is a function of the expected wage rate.
D) none of the above
C
Economics
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The slope of the perfectly inelastic demand curve is ________, the slope of the perfectly elastic demand curve is ________
A) undefined, zero B) one, one C) zero, undefined D) one, zero
Economics
The major factor affecting a nation's balance of payments is
A) an increase in its rate of unemployment. B) its rate of inflation relative to the rate of inflation of its trading partners. C) a change in the productivity of its labor. D) its stock market movements.
Economics