Essay
Assume that the economy is at full employment.Now suppose there is an increase in the size of the labour force.At the new equilibrium,
a)Will there be an output gap? What type?
b)What is the effect on the price level?
c)What is the effect on the level of Real GDP?
Correct Answer:

Verified
An increase in the size of the labour fo...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q1: Which of the following is not a
Q2: What is the multiplier?<br>A)It is the effect
Q3: Indicate whether each of the following factors
Q5: Demonstrate graphically and explain the case of
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1338/.jpg" alt=" -Refer to the
Q7: Table 5.2 shows the aggregate demand and
Q8: Which of the following will cause a
Q9: What is the result of a decrease
Q10: Which of the following will provide a
Q11: An increase in exports will have what