How is a firm's labor demand curve affected when the price of its product rises?
What will be an ideal response?
If the price of a firm's product increases, it increases its supply of the product. This increases the firm's demand for labor at the existing market wage. Therefore, the firm's labor demand curve shifts to the right.
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If a good is labor intensive it means that the good is produced
A) using relatively more labor than goods that are not labor intensive. B) using labor as the only input. C) using more labor per unit of output than goods that are not labor intensive. D) using labor such that the total cost of labor is greater than the total cost of capital. E) using labor such that the cost of labor is more than 50% of total cost.
A Fed purchase of securities will most likely have which of the following effects?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve