Figure 10-1
If the price level in Figure 10-1 were 100,
a.
firms would have to lower their prices.
b.
inventories would be accumulating.
c.
shortages of goods would exist.
d.
aggregate quantity demanded would exceed aggregate quantity supplied.
e.
both c and d would occur.
e
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Which of the following is likely to happen if the level of technology used in an economy improves, assuming all else equal?
A) The economy's labor demand curve will shift to the right. B) There will be a downward movement along the labor demand curve. C) The economy's labor demand curve will shift to the left. D) There will be an upward movement along the labor demand curve.
A model in which workers won't be concerned about the possibility of being fired if they don't work hard, because their wage is so low, is called
A) a cost—benefit model. B) a job—stress model. C) a gift—exchange model. D) a shirking model.