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Unformatted text preview: ase in the real wage and an increase in the real interest rate.
C) a decrease in the real wage only.
D) an increase in the real wage and a decrease in the real interest rate.
E) an increase in the real wage and an increase in the real interest rate. 1 6) 7) The output supply curve is the relationship between output and
A) total factor productivity.
B) real interest rates.
D) capital stock.
E) labour supply. 7) 8) The firm will hire current labour until
A) the marginal product of labour equals total employment.
B) total factor productivity is maximized.
C) profits are maximized.
D) the marginal product of labour equals the wage rate.
E) the marginal product of labour is less than the real interest rate. 8) 9) A likely explanation for the extremely large reduction in investment spending during World War
II would be
A) that consumption spending fell very little.
B) that there was much government control over prices and the distribution of raw materials
during the period.
C) higher than us...
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- Spring '13