An increase in the productivity of labor induces
A) an increase in the demand for labor.
B) an increase in the cost of labor.
C) a firm to hire fewer workers since fewer workers are needed with the increase in productivity.
D) a firm to offer a higher wage for workers since the workers are now more productive.
A
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Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between workers and jobs because
A) help-wanted advertising falls during recessions. B) help-wanted advertising rises during recessions. C) workers spend a lot of time searching for work in recessions. D) people are indifferent between being employed or not.
The market demand curve for a perfectly competitive industry is
a. perfectly horizontal b. perfectly vertical c. upward sloping d. downward sloping e. nonexistent in perfect competition