An efficiency wage is ________ because the result is ________
A) set below the equilibrium real wage; reduced turnover and more work effort
B) set above the equilibrium real wage; reduced turnover and more work effort
C) not often used; not much different from minimum wage use
D) set above the equilibrium real wage; increased turnover and more work effort
E) set above the equilibrium real wage; reduced turnover and less work effort
B
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Which of the following about inventory changes and GDP is true?
What will be an ideal response?
In 2017 inflation adjusted U.S. poverty threshold was
A. An annual income of less than $10,000 for a family of two. B. The cost of food and shelter but not other necessities for an individual. C. An annual income of less than $25,000 for a family of four. D. The dollar measure of output produced by an individual.
What are the two most important demand for money-shifters?
a. changes in price level and in NGDP b. changes in supply level and in NGDP c. changes in price level and in RGDP d. changes in supply level and in RGDP
The economy suffered a mild recession in 2001. Despite the recession, home sales and durable goods sales remained high. Which of the following is a plausible explanation?
A) The Fed's pursuit of contractionary policy stimulated these markets. B) The Fed caused a reduction in the federal funds rate to its lowest level in 40 years. C) Home building and consumer durable purchases are always high during a recession. D) Rising inflation encouraged many to invest in the real estate market.