If there are no unintended changes in inventories, the economy is at its equilibrium level of real gross domestic product (GDP) demanded
a. true
b. false
a. true
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As interest rates rise, people tend to hold ______ money; as their incomes rise, people tend to hold ______ money.
Fill in the blank(s) with the appropriate word(s).
New residential housing is counted in GDP as a(n):
a. durable consumption good. b. household durable good. c. investment good. d. inventory expansion. e. long-term durable good.
A change in the equilibrium in one market which affects other markets is known as _____________________
Fill in the blank(s) with the appropriate word(s).
Consider the accompanying figure representing the labor market below.
If a minimum wage of $12 per hour is imposed in this labor market, then:
A. 400 workers will earn $12 an hour. B. worker surplus will fall. C. total earnings will rise. D. 200 workers will lose their jobs.