Assume potential GDP is $16 T. If the economy is in a short-run recession, there will be labor ____, which will cause wages to begin to ___
a. surpluses; decrease
b. shortages; increase
c. surpluses; increase
d. shortages; decrease
Ans: a. surpluses; decrease
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If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level
A) does not change and the inflation rate is zero. B) falls and the inflation rate is negative. C) rises and the inflation rate is negative. D) falls and the inflation rate is positive. E) rises and the inflation rate is positive.
Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D1 to D2, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be
Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D1 to D2, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be
a.
both C and E
b.
both D and E
c.
at a price less than P1
d.
at a price higher than P1
e.
at an output greater than Q1
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.
Between 1992 and 1999, the employment rate for single mothers in the United States:
A. increased by 15 percentage points. B. decreased by 19 percentage points. C. remained fairly constant. D. more than doubled.