Firefighters and other municipal employees can have a key advantage when unionizing because
A. municipal employees, such as firefighters, tend to be much more aggressive negotiators.
B. municipal employers, unlike businesses, are unable to move to another state to avoid unionization.
C. municipal employers, unlike private-sector employers, are always strongly pro-union.
D. municipal employers tend to be much less inexperienced negotiators.
Answer: B
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A program of complete indexation would
A) eliminate most of the costs of inflation. B) increase the sensitivity of the economy to supply shocks. C) make the role of expectations negligible. D) all of these
A transfer of money from a NOW account to a money market fund causes
a. M1 to fall. b. M2 to rise. c. M3 to rise. d. both M1 to fall and M2 to rise.
Suppose that one could determine the amount of income that is pure economic rent. If a law were passed that taxed 50 percent of that rent, what would happen to the amount of work that people perform?
A. It would increase as people seek higher income. B. It would be unchanged. C. It would decrease as people suffer a loss of income. D. It would increase for some and decrease for others.
Answer the following statement(s) true (T) or false (F)
1. The formula for calculating aggregate demand is the same formula used to calculate GDP using the expenditure approach. 2. The aggregate demand and aggregate supply model is a closed economy model because it includes international trade effects. 3. An inverse relationship exists between the quantity of real GDP demanded and the overall price level. 4. The aggregate demand curve is downward sloping. 5. Purchasers in the economy demand more real output when the price level rises.