If there is a one-shot increase in the stock of capital , the demand for labour schedule, as derived above,
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2 marksMacroeconomicsClassical macroeconomicsThe classical labour market and employmentModerateabout 3 min
DSE 2008 Question 42: Classical macroeconomics
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If there is a one-shot increase in the stock of capital (K̅), the demand for labour schedule, as derived above, (A) shifts up (B) shifts down (C) does not shift (D) the information available so far is not adequate to answer this question
Also written as: If there is a one-shot increase in the stock of capital (K_bar), the demand for labour schedule, as derived above,
Classical macroeconomics has come up 35 times in 7 exams since 2008.
What this question tests
This question is on The classical labour market and employment, part of Classical macroeconomics in Macroeconomics.
How flexible wages clear the labour market and fix employment and output.
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Question from the DSE 2008 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.