When Americans buy Mercedes-Benz automobiles made in Germany, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency.
B. Demand for U.S. dollars and a supply of a foreign currency.
C. Demand for U.S. dollars and a demand for a foreign currency.
D. Supply of U.S. dollars and a demand for a foreign currency.
Answer: D
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Students who leave school in the spring and look for work are one source of ________
A) structural unemployment B) cyclical unemployment C) frictional unemployment D) business-cycle fluctuations
Suppose total government spending is increased permanently by ten percent, with no change in tax rates. In the long run, the resulting deficit will disappear, ________
A) only if government spending is brought back down to the original level B) if economic growth raises tax revenue by ten percent C) if the government debt is sold to foreigners D) unless the money is spent entirely on government consumption
When a labor market fails to reach equilibrium, workers doing the same job can be paid different amounts
a. True b. False Indicate whether the statement is true or false
According to the Lucas supply function, when the income effect dominates the substitution effect, workers who experience a ________ price surprise will work ________ hours.
A. positive; more B. negative; fewer C. negative; the same number of D. positive; fewer