Consider the labor market for short-order cooks. An increase in the wages paid to fast-food workers will cause
a. both equilibrium wages and equilibrium employment to increase in the market for short-order cooks.
b. both equilibrium wages and equilibrium employment to decrease in the market for short-order cooks.
c. equilibrium wages to increase and equilibrium employment to decrease in the market for short-order cooks.
d. equilibrium wages to decrease and equilibrium employment to increase in the market for short-order cooks.
c
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Which of the following characterizes the market that Chipotle competes in?
A) "Fast-casual" restaurants sell identical products. B) All "fast-casual" restaurants face horizontal demand curves. C) Barriers to entry are low. D) There are a small number of firms.
One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
Which of the following would cause the IS curve to shift?
A) a change in the multiplier B) a change in business or consumer confidence C) an increase in autonomous tax revenue D) All of these would shift the IS curve.