Given the resources within the economy acme Pencil Company can produce one million pencils a year. However increasing demand for labor has driven workers’ wages up and workers now want to purchase two million pencils a year causing the price of pencils to increase. This would be an example of The paradox of thrift Energy consumption disequilibrium Demand pull inflation The high cost of doing business None of the above

Given the resources within the economy acme Pencil Company can produce one million pencils a year. However increasing demand for labor has driven workers’ wages up and workers now want to purchase two million pencils a year causing the price of pencils to increase. This would be an example of The paradox of thrift Energy consumption disequilibrium Demand pull inflation The high cost of doing business None of the above

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 2DQ

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