Research on labor supply generally shows that
A) labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage.
B) labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage.
C) labor supply rises in response to both a temporary and a permanent increase in the real wage.
D) labor supply falls in response to both a temporary and a permanent increase in the real wage.
B
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If the current account has a negative balance of $100 and the capital and financial account has a positive balance of $80, there will be ________ in official reserves of ________
A) a decrease; $20 B) an increase; $20 C) an increase; $180 D) a decrease; $180
Expansions of aggregate demand cause the economy to move along what is essentially a vertical aggregate supply curve when
A) wage increases catch up to inflation. B) higher prices can reduce interest rates no further. C) money supply growth rises to equal the rate of aggregate demand expansion. D) from a recession level of output, full employment is reached.