The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,
a. the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
b. the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
c. there is a surplus of blue jeans at the $30 price.
d. All of the above are correct.
d
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Which of the following will help reduce the natural rate of unemployment?
a. an increase in the minimum wage b. a decrease in cyclical unemployment c. an increase in the number of automatic stabilizers d. an increase in government spending on employment training programs e. a decrease in taxes
The effort of a firm's workers depends on their real wage according to the following schedule.
The marginal product of labor is MPN = E(400 - 4N)/30.(a)What is the efficiency wage?(b)How many workers will the firm hire?(c)Suppose an adverse productivity shock reduces the marginal product of labor to MPN = E(360 - 4N)/30. How would your answers to parts (a) and (b) change?
What will be an ideal response?