If the real wage is equal to 8 widgets, and only an integer ...

[sc00by25]

If the real wage is equal to 8 widgets, and only an integer number of workers can be hired, the Gizmo company should hire
 
  A) 2 workers.
  B) 3 workers.
  C) 4 workers.
  D) 5 workers.

Question 2

In the real intertemporal model, if future total factor productivity increases, this captures the effects of
 
  A) intemporal substitution.
  B) Ricardian equivalence.
  C) the government expenditure multiplier.
  D) news shocks.

[shoemake]

Answer to Question 1

A

Answer to Question 2

D