In this graph, what concept could W 1 be used to demonstrate?
a. Inflationary markets often cause unemployment.
b. Establishing a minimum wage may lead to unemployment.
c. Unemployment can be resolved simply by increasing the labor supply.
d. The ideal wage maximizes the quantity of labor demanded.
b. Establishing a minimum wage may lead to unemployment.
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According to the real-business-cycle perspective
A) the economy cannot be stabilized by policy activism. B) the Phillips curve is very important. C) passive policy making is important. D) active policy making is important.
An increase in government spending will increase the government budget deficit, which tends to increase interest rates, increase saving, crowd out private investment, stimulate capital formation, and slow the level of economic activity
a. True b. False
Ceteris paribus, according to the law of supply, if the price of lawn mowing decreases from $50 per lawn to $45 per lawn, then the:
A.) Quantity supplied of lawn mowing will decrease. B.) Supply curve for lawn mowing will shift to the right. C.) Quantity supplied of lawn mowing will increase. D.) Quantity supplied of lawn mowing will stay the same.
Suppose you lend $1,000 at an interest rate of 10 percent over the next year. If the expected real interest rate at the beginning of the loan contract is 4 percent, then what rate of inflation over the upcoming year would be most beneficial to you as the
lender? An inflation rate A) equal to 0 percent. B) greater than 6 percent. C) equal to 6 percent. D) equal to 4 percent.