If the government liberalizes immigration policies, the demand for labor will ________, the real wage will ________, and the quantity of labor hired will ________
A) remain the same; decrease; increase B) increase; decrease; remain the same
C) remain the same; decrease; decrease D) remain the same; increase; decrease
A
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Automatic stabilizers reduce fluctuations in GDP by
a. eliminating spending shocks b. increasing the amount of spending each year c. reducing the additional spending that occurs in each round of the multiplier d. increasing saving e. reducing the need for government involvement in the economy
Keynes’ law states that:
a. demand creates its own supply. b. when there is supply there will be demand. c. you can only supply what is demanded. d. people create both supply and demand.
Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following is most likely to be the new money market equilibrium?
A. An interest rate of 6 percent and a quantity of $1.5 trillion. B. An interest rate of 5 percent and a quantity of $2 trillion. C. An interest rate of 4 percent and a quantity of $2.5 trillion. D. An interest rate of 3 percent and a quantity of $3 trillion.
Exhibit 4-3 Supply and demand curves
In Exhibit 4-3, which of the following might cause a shift from S2 to S1?
A. A decrease in input prices. B. An improvement in technology. C. An increase in input prices. D. An increase in consumer income.