The discovery of a new oil field has attracted several new investors to Oiland. How will this affect Oiland's labor demand curve?
What will be an ideal response?
An increase in investment in Oiland will lead to an increase in production in Oiland. This will lead to an increase in the demand for labor. As a result, the labor demand curve of Oiland will shift to the right leading to an increase in the equilibrium wage rate and a decrease in unemployment.
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A lower price level combined with a decrease in real GDP occurs when the
A) short-run aggregate supply curve shifts rightward. B) short-run aggregate supply curve shifts leftward. C) aggregate demand curve shifts rightward. D) aggregate demand curve shifts leftward.
Which of the following is part of "M2" but not "M1"?
A) money market mutual fund shares B) saving deposits C) time deposits (under $100,000) D) all of the above E) none of the above