If a natural disaster destroys some of the capital stock, then the classical model predicts
a. labor demand, real wages, and output will fall.
b. labor demand and real wages will rise, output will fall.
c. the labor market remains unchanged but output falls.
d. None of the above
A
Economics
You might also like to view...
As the economy becomes more technologically sophisticated, the wage premium can be expected to
a. continue rising. b. continue falling. c. rise. d. fall.
Economics
Economists divide productive resources into which of the following four broad categories?
a. land, labor, money, enterprise. b. land, labor, capital, enterprise. c. minerals, unskilled labor, semi-skilled labor, skilled labor. d. land, buildings, machinery, money.
Economics