If the economy experiences inflation, aggregate
What will be an ideal response?
demand increases faster than aggregate supply
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According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,
A. the quantity of other goods that must be given up for further reductions in air pollution will decrease. B. the quantity of other goods that must be given up for further reductions in air pollution will increase. C. the social cost of additional air pollution will increase. D. there will be no change in the marginal cost of reducing air pollution.
If a decrease in the price of one good causes the demand curve for another good to shift to the left, the two goods must be
a. inferior b. normal goods c. inferior goods d. substitutes e. complements
Since 1948, the history of real wage rates generally shows that
a. prices and wages have risen at the same rate. b. prices have risen at a slower rate than wages. c. prices have risen faster than wages. d. real wages have remained constant over the period.
Suppose you work in a human relations office, and an employee, Ariana, comes to you with a set of statistics she has gathered about your company. Which of these statistics might indicate wage discrimination?
a. Fewer minorities were interviewed than whites. b. There are ten percent more males than females in management. c. Female mechanics earn ten percent less than male mechanics. d. Technicians make fifty percent more than janitors.