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Author Question: Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price ... (Read 64 times)

nummyann

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on: Jun 30, 2018
Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then
 
  a. both the quantity supplied and demanded of labor will increase.
  b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease.
  c. both the quantity supplied and demanded of labor will decrease.
  d. the quantity of labor supplied and demanded would remain constant.

Question 2

If the consumption function is C = 120 +_.8(Y-T) in the basic Keynesian model, then in the government spending multiplier is:
 
  a. 5.
  b. 4.
  c. 1.25.
  d. .8


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qytan

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


nummyann

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

bulacsom

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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