If labor supply is increasing in the real wage, then
A) the substitution effect is larger than the income effect.
B) the income effect is larger than the substitution effect.
C) the production function is increasing in labor.
D) the marginal product of labor is decreasing.
A
Economics
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During an economic expansion, real GDP ________ and unemployment ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
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Which of the following would be included in the calculation of gross domestic product?
a) government purchase of a new submarine b) Social Security payment to a retired military officer c) the purchase of a home built 10 years ago d) contributions to a charity organization e) a barber cutting the hair of his own children
Economics