Assuming the economy is experiencing a recessionary gap, classical economists predict that:
a. wages will remain fixed
b. monetary policy will sell government securities.
c. higher wages will shift the short-run aggregate supply curve leftward.
d. lower wages will shift the short-run aggregate supply curve rightward.
e. none of the above.
d
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Consider a market for used cars. Suppose there are only two kind of cars: lemons and good cars. A lemon is worth $1,500 both to its current owner and to anyone who buys it. A good car is worth $6,000 to its current and potential owners
Buyers can't tell whether a car is a lemon until after they have bought the car. What do economists call the problem that buyers of used cars face? What is the price of a used car? Explain and substantiate your answer.
Refer to Table 4-7. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor supplied?
A) 80,000 B) 550,000 C) 630,000 D) 1,180,000
The U.S. Treasury both pays and receives almost all of the interest on that portion of the national debt that is held by
a. domestic investors. b. foreign investors. c. government agencies and the Federal Reserve system. d. commercial banks.
In Figure 9-13, a movement of long-run equilibrium from point A to point C could be caused by a(n)
a.
decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b.
increase in short-run supply from S1 to S2
c.
increase in supply from S1 to S2 in response to economic profits following an increase in demand from D1 to D2
d.
increase in demand from D1 to D2 in the short run