When the economy is in an inflationary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________
A) shortage; rise; SRAS; leftward
B) shortage; fall; SRAS; leftward
C) surplus; rise; AD; rightward
D) shortage; fall; AD; rightward
E) surplus; fall; SRAS; rightward
A
You might also like to view...
The oversimplified multiplier formula assumes that the
A. level of consumption spending is fixed. B. price level is fixed. C. government spending is fixed. D. net exports depend on income.
Which of the following statements is true?
A) In the United States, the unemployment rate among bachelor degree holders is more than the unemployment rate among high school diploma holders. B) Unemployment rate is higher among groups with lower educational attainment. C) More educated workers have a lower opportunity cost of time than less educated workers. D) The unemployment rate in a country normally increases when the country's economy expands.
Average consumer prices are included in the index of leading economic indicators.
Answer the following statement true (T) or false (F)
Given the basic rule of thumb for the relationship among inflation, productivity and nominal wage increases, if wages rise by 1 percent and productivity increases 2 percent, one would predict inflation to be:
A. 3 percent. B. 1.5 percent. C. 0 percent. D. ?1 percent.