What is the major cost of slowing down an ongoing inflation?
a. Output must rise above potential.
b. The Fed must sell bonds at lower prices than those at which the bonds were purchased.
c. Output must fall below potential.
d. The Fed must purchase bonds from the public.
e. The Fed must lend additional money to member banks at below-market interest rates.
C
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As a summer job, some teenagers choose to detassle corn, a job requiring long hours walking corn fields in the summer heat. Other teens take jobs working as lifeguards. Given that detassling corn is a more difficult job than working as a lifeguard, we would expect a difference in wages between the two jobs. This difference is known as
a. an efficiency wage. b. a compensating differential. c. a wage adjustment. d. a minimum wage.
Use the following table to answer the question below. Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500There will be a shortage whenever the price is
A. higher than $25. B. equals $25. C. higher than $30. D. lower than $25.
Gross Domestic Product is equal to the market value of all the goods and services ____________ in a given period of time.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a possible disadvantage of a tournament?
A. The outcome of a tournament may appear to be random. B. Workers will stop providing effort as soon as they believe they have no chance to win the prize. C. Workers may collude to share the prize in order to provide lower levels of effort. D. Competitors have little incentive to help one another (and they may even sabotage each other's work). E. All of the above are possible disadvantages of a tournament.