The FE line is vertical because the level of output at full employment doesn't depend on the
A) real wage rate.
B) level of employment.
C) marginal product of labour.
D) real interest rate.
Correct Answer:
Verified
Q2: A tax cut on capital will
A)shift the
Q3: A decrease in the effective tax rate
Q4: A rise in the price of a
Q5: A rise in expected future output that
Q6: The FE line shows the level of
Q8: The IS curve would unambiguously shift up
Q9: Which of the following would shift the
Q10: A temporary increase in government purchases causes
Q11: Classical economists argue that an increase in
Q12: A temporary supply shock,such as an increase
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