If the income elasticity of money demand is 3/4 and the interest elasticity of money demand is -1/4, by what percent does money demand rise if income rises 10% and the nominal interest rate rises from 4% to 5%?

The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $5.50 per hour?

A) unemployment equal to 400 hours B) unemployment equal to 200 hours C) a shortage of 400 hours D) nothing because the minimum wage has no effect on the equilibrium price and quantity

The value of the marginal product of capital can be calculated as the marginal product of capital multiplied by the cost of the capital input

a. True b. False Indicate whether the statement is true or false