If both the supply of labor and the demand for labor increase, then
A: potential GDP decreases.
B: potential GDP increases.
C: full employment decreases.
D: the impact on potential GDP is uncertain
A: potential GDP decreases.
B: potential GDP increases.
C: full employment decreases.
D: the impact on potential GDP is uncertain
举一反三
- Potential GDP per labor hour can increase due to A: increases in labor productivity. B: increases in the quantity of money. C: increases in population. D: decreases in the quantity of capital.
- An increase in taxes on labor income decreases potential GDP.
- Because the productivity of labor decreases as the quantity of labor employed increases, A: the quantity of labor a firm demands increases as the real wage rate decreases. B: the quantity of labor a firm demands increases as the money wage rate decreases. C: the labor demand curve shifts right as the real wage rate decreases. D: the aggregate production function shifts upward as the real wage rate decreases.
- When a firm sells a product out of inventory, GDP: A: increases. B: decreases. C: is not changed. D: increases or decreases, depending on the year the product was produced.
- In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment. A: raises; increases B: raises; decreases C: lowers; increases D: lowers; decreases