If potential GDP increases, then the
A) real wage rate increases.
B) real wage rate falls.
C) aggregate supply curve shifts leftward.
D) aggregate demand curve shifts rightward.
E) aggregate supply curve shifts rightward.
E
You might also like to view...
What is an effective counter against the argument that international trade should be restricted to protect domestic jobs?
A) A more effective policy would be to support the industry with subsidies. B) The more diversified the economy, the more stable it is. C) Free trade increases the number of jobs in which workers earn higher incomes. D) Rent seeking behavior should be encouraged. E) Free trade in "green" goods will increase jobs.
The city of Hope has a labor force of 1000. Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs
On January 1, May 1, and September 1 of each year, 50 people lose their jobs for a period of four months before finding new jobs. What is the unemployment rate in any given month? A) 2% B) 3% C) 5% D) 7%