If the economy is self-regulating and in a recessionary gap,
A) wages and prices will fall.
B) wages will fall, but prices will rise.
C) neither wages nor prices will change.
D) wages will rise, but prices will fall.
E) wages and prices will rise.
A
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The major change in American labor markets this century is
A) the steady rise of the unemployment rate. B) the steady rise of the employment rate. C) the increase in the labor-force participation rate. D) the increase in the female labor-force participation rate.
Mike lives and works as a musician in the U.S. However, he sometimes plays in concerts in foreign countries. The money he earns from these concerts are treated as ________ in the U.S. current account
A) imports B) exports C) factor payments from foreigners D) transfer receipts
The "life cycle" hypothesis sates that
a. MPC remains constant as national income rises b. MPC varies with age c. transitory income determines consumption d. MPC varies with permanent income e. consumption spending is independent of income
The Laffer curve illustrates that
a. deadweight loss rises by the square of the increase in a tax. b. deadweight loss rises exponentially as a tax increases. c. tax revenue first rises, then falls as a tax increases. d. Both a) and b) are correct.