A minimum wage policy induces an:
A) excess demand for labor.
B) excess supply of labor.
C) efficient market outcome.
D) elastic labor supply response.
B
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Suppose that there is an increase in expected future disposable income and simultaneously an increase in the expected profitability of investment
As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________. A) rises; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) rises; increases E) falls; increases
Net migration can help fuel population growth which, in turn, provides a positive incentive for businesses to expand production and employment
Indicate whether the statement is true or false
In competitive markets, a surplus or shortage will
A. cause changes in the quantities demanded and supplied that tend to intensify the surplus or shortage. B. cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortage. C. cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage. D. never exist because the markets are always at equilibrium.
Considering only its direct effect on income, expansionary fiscal policy tends to:
A. decrease a trade deficit. B. increase a trade deficit. C. increase a trade surplus. D. be ambiguous with respect to the trade deficit.