2589

Are the following statements true or false? 1. If the price of a product decreases with the nominal wage unchanged, the firm producing that product will want to hire fewer workers. This will be represented as a leftward shift in the demand-for-labor function. 2. If the amount of physical capital increases, demand for labor will increase if capital is substitute for labor. 3. If a labor-saving technological progress takes place, demand for labor will shift to the left. 4. An increase in the amount of complementary capital will cause a movement along the demand-for-labor function. 5. The nominal GDP in a year represents three things at the same time: The market value of all the final goods and services produced (except those produced ….) Aggregate expenditure on those goods and services. Aggregate income earned by the factors of production that produced those goods and services.