Assume the market for candles is competitive. A new invention leads to labor-augmenting technological progress in the production of candles. This development
a. decreases the demand for workers who make candles and decreases their equilibrium wage.
b. increases the demand for workers who make candles and increases their equilibrium wage.
c. increases the supply of workers who make candles and decreases their equilibrium wage.
d. increases the supply of workers who make candles and increases their equilibrium wage.
b
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Federal Reserve liabilities are equal to
A) gold certificates + other Fed liabilities. B) bank reserves + other Fed liabilities. C) Federal Reserve notes. D) cash + loans + U.S. Treasury deposits.
Describe the major sources of tax revenue and expenditures for the federal government.
What will be an ideal response?
If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy?
A) an increase in oil prices B) an increase in taxes C) an increase in government spending D) a decrease in the money supply and an increase in the interest rate
According to the 1790 census, the majority of whites had links to
(a) the British Isles, thus explaining why British institutions were selected to guide development and growth in the colonies. (b) Germany, thus explaining why German institutions were selected to guide development and growth in the colonies. (c) Spain, thus explaining why Spanish institutions were selected to guide development and growth in the colonies. (d) Madagascar and Zanzibar, thus explaining why institutions from Madagascar and Zanzibar were selected to guide development and growth in the colonies.