Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, ________ in country A will tend to ________
A) labor demand; decrease B) labor supply; decrease
C) labor demand; increase D) labor supply; increase
D
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The Federal Open Market Committee has responsibility for
A) advising the Treasury Department on monetary policy. B) printing money. C) issuing orders to buy or sell government securities for the Fed. D) appointing members to the Board of Governors of the Federal Reserve system.
Refer to Figure 5-3. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply decreases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
The reduction in the U.S. government deficit in the early 1990s was the result of strong economic growth
a. True b. False Indicate whether the statement is true or false