If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour, and it was paying $7.25 an hour, an increase in market demand so that the new equilibrium was $9.00 per hour would cause them to
A. lower their offering wage to $6.50 an hour.
B. pay between $7.25 and $9.00.
C. raise their offering wage to $9.00 an hour.
D. do nothing differently.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The value of the money multiplier will depend on the rate of interest that banks charge
a. True b. False Indicate whether the statement is true or false
A technological breakthrough lowers the cost of manufacturing microwave ovens. As a result, the market changes to a new equilibrium because of
a. an upward movement along the demand curve for microwave ovens. b. a rightward shift in the demand curve for microwave ovens. c. a rightward shift in the supply curve for microwave ovens. d. a shortage of microwave ovens.
If a family falls below the federal poverty line, ______ considered to be poor.
a. every member over 18 is b. every individual member is c. only the employed members are d. only the children are