In the situation shown by this graph, what will be the most likely result of the fiscal policy on employment?
a. The unemployment rate will fall.
b. The unemployment rate will rise.
c. The unemployment rate will remain unchanged.
d. The unemployment rate will move unpredictably.
b. The unemployment rate will rise.
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The lowest wage for which a person is willing to supply labor is known as the
A) substitution wage. B) income effect. C) derived wage. D) reservation wage.
In the Cournot model, a firm maximizes profit by selecting
A) its output, assuming that other firms keep their output constant. B) its price, assuming that other firms keep their price constant. C) its output, assuming that other firms will retaliate. D) its price, assuming that other firms will retaliate.
Which of the following is a behavioral implication of bounded rationality?
A) unbounded selfishness B) a rule of thumb C) a rational mistake D) a nervous breakdown
On average, college graduates earn significantly more income than those with less education and the disparity tends to widen into middle age
a. True b. False