If the graph shown is displaying a competitive labor market:
A. Q* would represent the most employment possible for the market.
B. D would represent the workers' demand for jobs at each wage.
C. P* would represent the equilibrium wage.
D. S would represent the firm's supply of jobs at each wage.
Answer: C
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If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ? Please explain
What will be an ideal response?
In Latin America, countries like Brazil and Mexico have found it necessary to grant their central banks more independence in order to
a. maintain higher levels of political stability. b. promote economic growth and employment. c. counteract high rates of inflation. d. deal with the consequences of globalization.
Early in President Obama’s term, the government began ______.
a. relying completely on automatic stabilizers for fiscal policy b. a fiscal policy to slow the rapidly growing economy c. a fiscal policy designed to maintain the status quo d. the largest fiscal stimulus policy in U.S. history
Deficits are a burden on future generations if they
A. cause national saving to fall. B. are not used for government capital formation. C. are always a primary government deficit. D. cause higher rates of inflation to occur.