Collective bargaining agreements that prohibit wage cuts for the duration of the contract contribute to:
A. an increase in aggregate supply.
B. a price level that is inflexible downward.
C. a multiplier effect.
D. a wealth effect.
Answer: B
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In his Report on a National Bank, _________________ argued in favor of the establishment of a Bank of the United States
a. Thomas Jefferson b. Alexander Hamilton c. George Washington d. Benjamin Franklin
What's the firm's contribution margin?
a. $15 b. $18 c. $3 d. $4
Other things equal, the equation for the real interest rate indicates that:
a. as inflation increases, the real interest rate will rise. b. as inflation increases, the nominal interest rate will fall. c. as inflation decreases, real income will fall. d. as inflation decreases, the real interest rate will rise. e. as inflation changes, the real interest rate will not change.
Which of the following is true? a. Consumption of a public good by one individual reduces the availability of the good for others. b. It is extremely difficult to limit the benefits of a public good to the people who pay for it
c. Public goods are free whenever the government produces them. d. From an efficiency standpoint, a market economy will generally supply too much of a public good.