Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?
a. There is a cost advantage for firms that do not discriminate.
b. Workers who are victims of discrimination will eventually drop out of the labor market.
c. Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
d. Discrimination cannot exist in markets.
a
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Assume Congress enacts a $10 billion decrease in spending and a $10 billion decrease in tax revenue. The result of this balanced-budget approach is a:
a. $10 billion decrease in aggregate demand. b. $20 billion decrease in aggregate demand. c. $100 billion decrease in aggregate demand. d. $10 billion increase in aggregate demand.
Milton Friedman is widely considered to be the father of monetarism
a. True b. False Indicate whether the statement is true or false
To protect the environment, governments in the United States have mainly used
a. legally enforceable direct controls on pollution. b. taxes on goods whose production creates pollution. c. direct taxes on emissions. d. discretionary guidelines suggested to polluting firms.
What does macroeconomic theory predict as the main economic effect of a reduction in the budget deficit?
a. lower real interest rates b. a drop in the exchange rate c. an increase in net exports d. All of the above are correct.