Refer to the diagram. Assume the economy is initially at point b 1 . With a time lag between price and nominal wage adjustments, an increase in aggregate demand will temporarily move the economy from:
A. b 2 to b 1 .
B. c 1 to b 2 .
C. b 1 to c 1 .
D. b 1 to b 2 .
C. b 1 to c 1 .
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Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because
a. Courtney is beautiful and Nicole is not. b. Courtney is 40 years old and Nicole is 60 years old. c. Courtney works the night shift and Nicole works the day shift. d. Courtney attended on the job-training seminars which allows her to do tasks Nicole is not qualified for.
Using the annuity rule, an annuity that pays $10 annually has a present value of $200 if the market interest rate is:
A. 20 percent. B. 10 percent. C. 5 percent. D. 15 percent.
A decrease in the money wage rate
What will be an ideal response?
Because of economies of scale, some countries specialize in manufacturing a particular product (such as cars) for which the global market can only support a limited number of firms. This is a reflection of _____
Fill in the blank(s) with the appropriate word(s).