3.If the demand for labor is plotted against the money wage, with the money wage on the vertical axis, then
A)an increase in the price level will cause the labor demand schedule to shift to the right.
B)an increase in the money wage will cause the labor demand schedule to shift to the left.
C)an increase in the money wage will cause the labor demand schedule to shift to the right.
D)the labor demand schedule will be upward sloping.
5. According to the classical model, a 10-percent increase in the money supply, holding everything else constant, will lead to
A) a 10% increase in prices, a 10% increase in the real wage, and a 10% increase in interest rates.
B)a 10% increase in prices, a 10% increase in the money wage, and a 10% increase in interest rates.
C)a 10% increase in prices, a 10% increase in the money wage, and no change in interest rates.
D)a 10% increase in prices and no change in the money wage or interest rates.
E)none of the above.
7. If the propensity to hold money is 6 and the money supply is 12, then the classical aggregate demand curve is
A) P = 2Y
B)P/Y = 48
C)P = 1/(2Y)
D)P = 2/Y
3.If the demand for labor is plotted against the money wage, with the money wage on the vertical axis, then
A)an increase in the price level will cause the labor demand schedule to shift to the right.
B)an increase in the money wage will cause the labor demand schedule to shift to the left.
C)an increase in the money wage will cause the labor demand schedule to shift to the right.
D)the labor demand schedule will be upward sloping.
5. According to the classical model, a 10-percent increase in the money supply, holding everything else constant, will lead to
A) a 10% increase in prices, a 10% increase in the real wage, and a 10% increase in interest rates.
B)a 10% increase in prices, a 10% increase in the money wage, and a 10% increase in interest rates.
C)a 10% increase in prices, a 10% increase in the money wage, and no change in interest rates.
D)a 10% increase in prices and no change in the money wage or interest rates.
E)none of the above.
7. If the propensity to hold money is 6 and the money supply is 12, then the classical aggregate demand curve is
A) P = 2Y
B)P/Y = 48
C)P = 1/(2Y)
D)P = 2/Y
Related textbook solutions
Related questions
1.An effective minimum wage law introduced into a perfectly competitive labor market with complete coverage is expected to cause employment to:
A.rise.
B.fall.
C. remain unchanged.
D.change in an unpredictable manner.
2.An increase in an effective minimum wage in a monopsony labor market will cause employment to:
A.increase.
B.decrease.
C. remain unchanged.
D.change in an unpredictable manner, depending upon the magnitude of the increase in the minimum wage.
3.Suppose that a 10% increase in the wage results in a 5% reduction in employment. In this case, labor demand is said to be:
| A. |
elastic |
|
| B. |
inelastic |
|
| C. |
unit elastic |
4. The cross-wage (cross-price) elasticity of demand between labor and capital is positive when
| A. |
the substitution effect is larger than the scale effect. |
|
| B. |
the scale effect is larger than the substitution effect. |
|
| C. |
the wage rises, but not when the wage decreases. |
|
| D. |
None of the above is correct. |
