Which of the following is most likely to occur in the labor market during a recession?
A. The growth rate of real wages declines.
B. New entrants to the labor market have an easier time finding jobs.
C. Bonuses and promotions become more frequent.
D. The supply of labor increases dramatically.
Answer: A
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The US is experiencing a technological boom. Relative to the other countries with lower technological growth, we expect to see the dollar
a. Appreciate b. Depreciate c. Stay constant in value d. None of the above
According to Baumol and Blinder, the lag between the time a policy is implemented and the time it affects aggregate demand is
a. longer for fiscal than monetary policy. b. longer for monetary than fiscal policy. c. approximately equal for both. d. influenced mainly by the size of the multiplier.
Which of the following is most likely to face extinction?
a. dogs living as pets in households b. dairy cows living on farms and producing milk c. bald eagles living in zoos d. tigers living in the wild