Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?
A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change.
B) The unemployment rate will fall.
C) The unemployment rate will rise.
D) None of the above will occur.
D
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From 1860 to 1910,
(a) The total population grew faster than the workforce. (b) National income grew faster than did total population. (c) The workday increased. (d) Foreign investment in the U.S. dropped continuously.
A major complication with fiscal policy to control aggregate demand is the
a. inability to agree on macroeconomic goals. b. accuracy of modern forecasting models. c. inability to change aggregate demand with fiscal tools. d. constantly changing investment and net exports because of other events.
An increase in the money supply by the Federal Reserve is likely to increase
I. consumption expenditures II. investment expenditures III. interest rates IV. the exchange rate A) I, II, III, and IV B) I, II, and III C) I, II, and IV D) I and II
If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:
A) bowed out from the origin. B) bowed in toward the origin. C) a straight line. D) a vertical line.