If a firm's labor input response to a decrease in the wage differs between the short and the long run, we know that more workers will be hired after the initial short run adjustment.
Answer the following statement true (T) or false (F)
True
Rationale: See Graph 13.9 in the text -- short run labor demand curves are always steeper than long run labor demand curves (unless they are the same).
Economics
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Goods which are demanded to produce something else are said to have a(n):
a. direct demand. b. composite demand. c. derived demand. d. joint demand. e. inelastic demand.
Economics