If the marginal productivity of labor decreases, then
A) the quantity of labor demanded at every possible wage rate will be less.
B) the quantity of labor demanded at every possible wage rate will be higher.
C) the quantity of labor demanded will not be affected.
D) the demand curve for labor will shift upward and to the right.
Answer: A
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Which of the following assets can a commercial bank count as reserves?
a. its holdings of U.S. Treasury bills b. its vault cash and deposits with the Fed c. its outstanding loans d. the savings accounts of its depositors
The social contract explanation for the existence of downwardly sticky wages focuses on
A. employment contracts that stipulate workers' wages, usually for a period of one to three years. B. unspoken agreements between workers and firms that firms will not cut wages. C. the incentive that firms have to hold wages above the market clearing rate. D. the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other industries are receiving similar cuts.