The rational expectations theory claims that workers and firms will not make systematic errors when they forecast inflation
a. True
b. False
Indicate whether the statement is true or false
True
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Workers work for after-tax wages, thus an income tax represents a reduction in the effective wage rate
a. True b. False
Can protection save jobs and the environment and prevent workers in developing countries from being exploited?
What will be an ideal response?
If the Fed wanted to decrease the money supply, one way to make an enormous impact would be to:
A. increase the reserve requirement, which would decrease the money multiplier. B. decrease the reserve requirement, which would decrease the money multiplier. C. increase the reserve requirement, which would increase the money multiplier. D. decrease the reserve requirement, which would increase the money multiplier.
Average income for adults still varies widely across gender and racial groups in the United States, which tells us:
A. discrimination causes differences in income across race and gender groups. B. income is correlated with race and gender. C. race and gender differences cause differences in income. D. All of these are true.