Use the following diagram to answer the next question.
Which of the following statements about this market is not correct?
A. A wage rate of $5 maximizes the number of workers employed.
B. Employers would benefit from a higher wage since they could profitably attract more workers.
C. At a wage rate greater than $5 less than 500 workers would be employed.
D. At a wage rate less than $5, less than 500 workers are supplied, so no more can be employed.
Answer: B
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Which of the following most accurately describes the "Fisher effect?"
a. Interest rates increase after inflation and decrease after deflation, but with a long lag. b. Interest rates are independent of inflation and deflation. c. Interest rates increase after inflation, but are not affected by deflation. d. Increasing interest rates precede inflation and decreasing interest rates precede deflation.
The United States has not experienced a recession as severe as the 2007-2009 downturn since the 1930s
a. True b. False Indicate whether the statement is true or false
Which of the following will cause the sharpest decrease in equilibrium quantity?
a. Supply decreases, demand is unchanged. b. Supply decreases; demand decreases. c. Supply is unchanged; demand unchanged. d. Supply is unchanged; demand decreases.
What is the outcome of demand-side policies when aggregate supply is upward-sloping?
What will be an ideal response?