All of the following shift the LAS curve EXCEPT
A) a change in the capital stock.
B) an increase in the money wage rate.
C) an increase in the stock of human capital.
D) technological progress.
B
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Which of the following statements correctly identifies a difference between labor and land?
A) Land can be rented but not owned by a firm, whereas labor can be rented or owned. B) Labor can be rented but not owned, whereas land can be rented or owned by a firm. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas land is rented until a point where the average product of land equals the price of land. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas land is rented until a point where the marginal product of land equals the price of land.
Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create a short-run trade-off between inflation and unemployment
Indicate whether the statement is true or false