A government wants to establish a minimum wage for workers to raise the standard of living for a large segment of the population. Where should the government set the minimum wage relative to W E ?
a. above W E
b. below W E
c. equal to W E
d. W E is irrelevant.
a. above W E
You might also like to view...
The capital stock of an economy increases: a. whenever money in circulation is decreased. b. whenever gross investment is positive
c. whenever gross investment is negative. d. only if net investment is positive. e. only if gross investment is zero.
After the Fed sells a government bond, which of the following is the impetus for the money supply process that follows?
a. Banks now have excess reserves. b. Banks now have deficient reserves. c. Banks must print money to purchase the bonds. d. Banks now have to hold more required reserves. e. Banks now must be regulated closely.
?Exhibit 10A-2 Macro AD-AS Model
In Exhibit 10A-2, the long-run aggregate supply curve represents:
A. ?potential real GDP output for this economy. B. that the economy is experiencing zero inflation. C. ?that the economy is experiencing a recessionary gap. D. ?the level of real GDP where the unemployment rate is zero.
Answer the following questions true (T) or false (F)
1. Peanut butter and jelly are complements. If the price of peanut butter increases, the demand for jelly will increase. 2. A normal good is a good for which the demanded decreases as income decreases, holding everything else constant. 3. The income effect explains why there is usually a direct relationship between the price of product and the quantity of the product demanded.