Based on our understanding of the wage setting equation, which of the following will not cause a reduction in the nominal wage?
A) an increase in unemployment
B) a reduction in the expected price level
C) a reduction in expected productivity
D) all of the above
E) none of the above
E
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Because of the recessions in 1983 and 1991, the structural deficit was far larger than the actual deficit in those years
a. True b. False Indicate whether the statement is true or false
When consumer spending is broken down into the major categories of goods and services, the largest single category is spending on transportation
a. True b. False Indicate whether the statement is true or false
Which of the following policies is the government most inclined to use when faced with a positive externality?
a. taxation b. permits c. subsidies d. usage fees
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A. creating excess quantities demanded or excess quantities supplied. B. pushing prices to market clearing levels more rapidly than private market forces. C. promoting the attainment of an unhindered market equilibrium. D. allowing quantity demanded to adjust to equality with aggregate supply.