A firm's inventory piled up during a recession. How will its labor demand be affected when its excess inventory gets sold off eventually?
What will be an ideal response?
The firm will increase its production after its excess inventory gets sold off after the recession. An increase in production will lead to an increase in its demand for labor. As a result, the firm's labor demand curve will shift to the right.
Economics
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The income effect of a price increase causes a decrease in the quantity of a normal good demanded
Indicate whether the statement is true or false
Economics
The most popular floating rate in swaps is
A) LIBOR. B) the Treasury note rate. C) the prime rate. D) the six-month Treasury bill rate.
Economics