In the Long Run

question 182

Multiple Choice

In the long run

• A) both supply and demand shocks have permanent effects on real GDP.
• B) real GDP can remain below potential.
• C) real GDP can remain above potential.
• D) both supply and demand shocks have no effect on real GDP.
• E) supply shocks have permanent effects on real GDP but demand shocks have no effect.

Grasp the concept and implications of efficiency wages in the labor market.

Recognize the role of labor unions in affecting wage rates and labor market conditions.

Analyze the distinction between inclusive and exclusive unions and their methods for impacting jobs and wages.

Understand the importance of human capital investment and its impact on the labor market.