Which of the following is consistent with the classical view of Say's law?
A) Saving increases by $2 billion and investment decreases by $2 billion.
B) Saving increases by $2 billion and consumption rises by $2 billion.
C) Saving increases by $2 billion, consumption decreases by $2 billion, and investment rises by something less than $2 billion.
D) Saving decreases by $2 billion and consumption decreases by more than $2 billion.
E) none of the above
E
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A minimum wage law dictates
A) the minimum qualifications for labor. B) the minimum quantity of labor that a firm must employ. C) the highest wage that firms must pay for labor. D) the lowest wage that firms may pay for labor.
If you pay $14,000 in taxes on an income of $125,000, and $17,400 in taxes on an income of $144,000, what is your marginal tax rate? Show your work
What will be an ideal response?
According to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage below the market clearing level. c. they explain real wage volatility. d. all of the above.
To measure the "core" inflation rate, the Bureau of Economic Analysis uses a price measure that
A. excludes food and energy prices because the prices of these items can be volatile. B. includes food and energy prices because the se items account for a significant portion of the typical consumer's expenditures. C. is made up of a fixed basket that includes durable goods, non-durable goods, and services. D. includes prices for different components of gross private domestic investment, government spending, and personal consumption expenditures.