An example of negative productivity shocks that could cause recessions is
a. a hurricane, which destroys capital.
b. a decrease in the price of oil.
c. reductions in defense spending.
d. all of the above.
e. both a and b.
A
Economics
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In the efficiency wage model with the efficiency wage above the market-clearing wage, when employment is at its full-employment level
A) labor supply equals labor demand. B) there is an excess supply of labor. C) there is an excess demand for labor. D) there could be either an excess demand for, or an excess supply of, labor.
Economics
Any change in a firm's fixed costs will change its profit-maximizing level of output
a. True b. False Indicate whether the statement is true or false
Economics