The figure illustrates all of the following EXCEPT
A. at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where QS is greater than QD.
B. if the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded.
C. there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment-a smaller number of positions.
D. if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point Wu an excess quantity of labor will be supplied.
Answer: B
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The price of a new textbook increased from $60 to $75 in one year, while the price of a used textbook increased by 25 percent. What happened to the relative price of a used textbook?
A) It increased by 25 percent. B) It increased by 10 percent. C) It remained constant. D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
Under the assumption of rational expectations, government fiscal and monetary policy changes are effective in the short run
A) all of the time. B) only when the short-run aggregate supply curve is the same as the long-run aggregate supply curve. C) only when the policy changes leave the position of the aggregate demand curve unaffected. D) only when the policy changes are unanticipated.
An increase in the price of ice cream would cause a decrease in the demand for ice cream and an increase in the demand for frozen yogurt, a substitute
a. True b. False Indicate whether the statement is true or false
Time lags
What will be an ideal response?