chapter_9_long

Chapter_9_long

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Unformatted text preview: . D) current consumption savings decision. E) future consumption- savings decision. 29) The equilibrium effects of an anticipated increase in future government spending include A) an increase in the real wage and an increase in the real interest rate. B) a decrease in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the real interest rate. D) an increase in the real wage and a decrease in the real interest rate. E) real wages and the real interest rate remaining unchanged. 29) 30) Effects of sectoral shifts are best analyzed by assuming that the shift generates A) a decrease in labour supply. B) an increase in labour supply. C) a decrease in labour demand. D) an increase in labour demand. E) an increase in both labour demand and supply. 30) 31) When drawn against the current real wage, the labour demand curve is A) downward sloping because the marginal product of labour rises with the quantity of labour employed. B) downward sloping because the marginal product of labour decline...
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This document was uploaded on 02/24/2014 for the course ECON 2152 at UWO.

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