If equilibrium GDP is below potential, then
a. unemployment is unusually low
b. the Fed will lower the money supply
c. the wage rate will fall as workers compete for scarce jobs
d. the aggregate supply curve will shift leftward
e. the wage rate will remain stable as labor productivity increases
C
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Phil Harrison is a welder who works on skyscrapers and extension bridges. Phil's brother William is also a welder but he works in a manufacturing plant where he does all of his welding on ground level
Which of the following would not explain why Phil earns a higher wage than his brother? A) cognitive dissonance B) Phil's marginal revenue product is greater than William's marginal revenue product. C) Phil has greater experience as a welder than his brother has. D) Phil's job is more hazardous than William's job.
The internet auction site eBay is an example of a(n)
A) Sealed Bid Auction. B) Second-Price Auction. C) English Auction. D) Both A and B.
Perfect competition is a market structure
A) in which any firm would have serious impediments to entry or exit. B) in which individual buyers and sellers have no effect on the market price. C) resulting from individual firms selling highly differentiated products. D) where there is significant regulation and markets are always efficient.
Because the consumer price index reflects the goods and services bought by consumers better than the GDP deflator does, it is the more common gauge of inflation
a. True b. False Indicate whether the statement is true or false