Suppose the government abolished the minimum wage law and the law that requires union wage rates to be paid on all government contract jobs. We would expect to see
A. a decline in the natural rate of unemployment.
B. the duration of unemployment to increase.
C. an increase in claims for unemployment benefits.
D. a recession.
Answer: A
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A) sells government securities to directly decrease bank reserves. B) decreases interest rates directly without altering bank reserves. C) increases interest rates directly without altering bank reserves. D) buys government securities to directly increase bank reserves.
A small country is an international borrower if its real interest rate without foreign borrowing is ________ the world real interest rate
A) higher than B) equal to C) lower than D) not comparable to
Because individuals can move from one government jurisdiction to another, _____
a. governments tend to cooperate with one another b. governments tend to look alike c. governments tend to merge into larger governments d. governments tend to give constituents what they want
In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce. b. surpluses and shortages will exist. c. all buyers will get what they want. d. disequilibrium will automatically correct itself. e. surpluses and shortages will put pressure on the price to move to its equilibrium.