The theory of efficiency wages explains why
a. setting wages at the equilibrium level may increase unemployment.
b. it may be in the best interest of firms to offer wages that are above the equilibrium level.
c. the most efficient way to pay workers is to pay them according to their skills.
d. it is efficient for firms to set wages at the equilibrium level.
b
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If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then
A) actual inventory investment will be less than planned inventory investment. B) the economy is at full employment. C) the economy is in a recession. D) actual inventory investment will be greater than planned inventory investment.
Which of the following will shift the supply curve for laptop computers to the left?
A) development of a cheaper microchip used in laptop computer production B) a subsidy to the laptop computer industry C) expectations of a future decline in laptop computer prices D) a reduction of the number of firms that make laptop computers
The national debt is
What will be an ideal response?
What are the two ways that the government can use fiscal policy to replace spending in a recession?
A. By reducing interest rates or by cutting taxes B. By spending money on government projects or by increasing the money supply C. By spending money on government projects or by cutting taxes D. By spending money on government projects or by reducing interest rates