Use the following figure to answer the next question.
If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be ________.
A. F and A, respectively
B. G and B, respectively
C. E and B, respectively
D. F and C, respectively
Answer: D
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How might a U.S. federal budget surplus affect the balance of trade? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)
A) A federal budget surplus raises interest rates, which raises exchange rates, and increases the balance of trade. B) A federal budget surplus reduces interest rates, which raises exchange rates, and reduces the balance of trade. C) A federal budget surplus raises interest rates, which raises exchange rates, and reduces the balance of trade. D) A federal budget surplus reduces interest rates, which reduces exchange rates and increases the balance of trade.
Seasonal unemployment is
A. a result of the seasonal pattern of work in specific industries. B. a result of business recessions that occur when aggregate demand is insufficient to create full employment. C. due to the fact that workers must search for appropriate job offers. D. a result of a poor match of worker's abilities and skills with current requirements of employers.
Effective price floors prevent the market price from falling to reach equilibrium.
Answer the following statement true (T) or false (F)
The graph below represents the supply and demand for labor in a purely competitive market. The price of labor that an individual firm in this market would take as given is:
A. 0a
B. 0c
C. Higher than 0a
D. Higher than 0c