Based on wage setting behavior, we know that a reduction in the unemployment rate will cause
A) no change in the real wage.
B) a reduction in the real wage.
C) an increase in the real wage.
D) an upward shift of the WS curve.
C
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What economic impact would the closing of a nearby military base have on a town? Would people and businesses that did not directly deal with the military personnel be affected?
What will be an ideal response?
Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under
A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.
Most economists think that the economy’s self-correcting mechanism is
A. relatively rapid. B. rapid in the short run and sluggish in the long run. C. sluggish in the short run and rapid in the long run. D. relatively sluggish.
If the MPS is 0.22, the MPC is
A. -0.22. B. 0.66. C. 0.78. D. 1.22.