Question 1

A decrease in the value people place on their actual time spent working will shift the labor ________ curve to the ________.

Accepted Answer

A)  supply; right 
B)  supply; left 
C)  demand; right 
D)  demand; left 
A)  supply; right 
B)  supply; left 
C)  demand; right 
D)  demand; left

Question 2

If the Phillips curve is vertical in the long run, then

Accepted Answer

A)  there is a trade-off between inflation and unemployment in the long run. 
B)  the inflation rate will always be zero in the long run. 
C)  the unemployment rate will be zero in the long run. 
D)  there is no trade-off between inflation and unemployment in the long run. 
A)  there is a trade-off between inflation and unemployment in the long run. 
B)  the inflation rate will always be zero in the long run. 
C)  the unemployment rate will be zero in the long run. 
D)  there is no trade-off between inflation and unemployment in the long run.

Question 3

If aggregate supply increases and aggregate demand remains unchanged

Accepted Answer

A)  there will be a positive relationship between the price level and the level of aggregate output. 
B)  there will be a negative relationship between the price level and the level of aggregate output. 
C)  there will be no systematic relationship between the price level and the level of aggregate output. 
D)  the price level will remain unchanged, but aggregate output will decrease. 
A)  there will be a positive relationship between the price level and the level of aggregate output. 
B)  there will be a negative relationship between the price level and the level of aggregate output. 
C)  there will be no systematic relationship between the price level and the level of aggregate output. 
D)  the price level will remain unchanged, but aggregate output will decrease.

Question 4

If firms start offering fewer employment benefits, such as less vacation time and a less desirable medical plan, we would expect the labor ________ curve to shift to the ________.

Accepted Answer

A)  demand; right 
B)  demand; left 
C)  supply; right 
D)  supply; left 
A)  demand; right 
B)  demand; left 
C)  supply; right 
D)  supply; left

Question 5

Sticky wages reduce unemployment.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in worker productivity

Accepted Answer

A)  reduces the demand for labor. 
B)  increases the demand for labor. 
C)  reduces the supply of labor. 
D)  increases the supply of labor. 
A)  reduces the demand for labor. 
B)  increases the demand for labor. 
C)  reduces the supply of labor. 
D)  increases the supply of labor.

Question 7

A firm may benefit by paying workers more than the market clearing wage because the higher wages may lead to all of the following except

Accepted Answer

A)  lower worker turnover. 
B)  improved worker morale. 
C)  reduced shirking of work. 
D)  reduced taxes. 
A)  lower worker turnover. 
B)  improved worker morale. 
C)  reduced shirking of work. 
D)  reduced taxes.

Exam 28: The Labor Market in the Macroeconomy

A decrease in the value people place on their actual time spent working will shift the labor ________ curve to the ________.

If the Phillips curve is vertical in the long run, then

If aggregate supply increases and aggregate demand remains unchanged

If firms start offering fewer employment benefits, such as less vacation time and a less desirable medical plan, we would expect the labor ________ curve to shift to the ________.

Sticky wages reduce unemployment.

A decrease in worker productivity

A firm may benefit by paying workers more than the market clearing wage because the higher wages may lead to all of the following except

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: The Labor and Land Markets

Input Demand: The Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

A decrease in the value people place on their actual time spent working will shift the labor curve to the .

If firms start offering fewer employment benefits, such as less vacation time and a less desirable medical plan, we would expect the labor curve to shift to the .