Using aggregate supply and demand curves drawn according to the Keynesian view, which of the following will occur if the Fed buys bonds in the open market and the economy is below full employment?
A. Aggregate demand will shift to the left and the unemployment rate will rise.
B. Aggregate demand will shift to the right and the unemployment rate will fall.
C. Aggregate demand will shift to the left and the price level will remain unchanged.
D. Aggregate demand will shift to the right and the price level will fall.
B. Aggregate demand will shift to the right and the unemployment rate will fall.
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Refer to Figure 12-9. Identify the firm's short-run supply curve
A) the marginal cost curve B) the marginal cost curve from a and above C) the marginal cost curve from b and above D) the marginal cost curve from d and above
A "two-tier" labor market in the United States refers to plenty of jobs for ________ workers and few jobs for ________ workers.
A. old; young B. unskilled; highly-skilled C. highly-skilled; unskilled D. southern; northern
An annually balanced budget
A. is the same as a cyclically balanced budget. B. is opposed by many economists because it would require cutting spending and raising taxes during recession, which might very well produce a depression. C. requires a constitutional amendment. D. requires the Congress and the President to approve special legislation authorizing the balanced budget.
In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?
A. Unemployment would increase as firms lay off workers. B. Firms would hire more workers. C. All workers prior to the wage increase would now earn at least $10.10 per hour. D. Some workers would leave the labor market.