When a minimum-wage law forces the wage to remain above the equilibrium level, the result is
a. both a shortage of labor and a shortage of jobs.
b. a shortage of labor and a surplus of jobs.
c. a surplus of labor and a shortage of jobs.
d. both surplus of labor and a surplus of jobs.
c
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Two goods, X and Y, are complementary goods if the demand for X
a. increases when the price of Y increases b. increases when income increases c. decreases when the price of Y increases d. increases as the price of its substitute good increases e. decreases as the price of its substitute good decreases
If the MPC changed from 0.8 to 0.6, then the spending multiplier would change from a. 5 to 2.5
b. 2.5 to 5. c. 0.8 to 0.6. d. 8 to 6.
What happens when the supply of a nonperishable good is greater than what consumers want to buy?
a. the good is discarded b. the good becomes a luxury and the price rises c. either the good is saved for later sale or the price is raised d. either the good remains unsold or the price drops
The shifts in aggregate demand and aggregate supply as a result of the housing bubble collapse caused output to:
A. fall dramatically immediately. B. stay the same, since the shifts worked in opposite directions. C. fall at a relatively slow rate over time. D. rise temporarily, then fall.