The lack of job information for workers would be an example of which explanation for wage differentials among workers?
A. Noncompeting groups
B. Compensating differences
C. Market imperfections
D. Principal-agent problems
C. Market imperfections
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In the above figure, the economy is initially at point B. If the exchange rate falls, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.
Keynesians believe that the transactions demand for money influences the
a. liquidity of money b. precautionary motives for holding money c. velocity of money d. interest rate e. level of real GDP
Which of the following is not an example of an automatic stabilizer?
What will be an ideal response?
The debt-GDP ratio
A) fell sharply after 1997 due to a high output ratio and higher income tax rates. B) rose from 1981-1992 due to large budget deficits. C) began to decline in 1993. D) all of the above.