Households increase the quantity of labor supplied when the
A) real wage rate rises because the opportunity cost of not working rises.
B) income tax rises because an increase in the income tax increases the demand for labor.
C) nominal wage rate falls because the opportunity cost of not working rises.
D) nominal wage rate rises because the real wage rate must also rise.
E) real wage rate rises because the opportunity cost of not working falls.
A
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A fall in the real interest rate brings a
A) rightward shift of the supply of loanable funds curve. B) rightward shift of the demand for loanable funds curve. C) leftward shift of the supply of loanable funds curve. D) movement down along the supply of loanable funds curve. E) movement up along the supply of loanable funds curve.
The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs. B) increasing marginal returns. C) economies of scale. D) All of the above.