In the IS-LM Model, assuming downward sloping IS curve and upward sloping LM curve; increase in consumers' wealth is going to
A) cause a movement along the IS curve.
B) cause a rightward shift of the IS curve.
C) cause a leftward shift of the LM curve.
D) cause a rightward shift of the LM curve.
B
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The level of potential output in the United States increases as the
A) supply of labor decreases. B) demand for labor decreases. C) supply of labor increases. D) stock of capital decreases.
Full employment is not considered to be zero unemployment, because
A) some people do not want a job. B) people do not find jobs instantaneously. C) some cyclical unemployment always exists. D) there are not enough jobs for everyone who wants one.
The aggregate supply curve is a fixed point representing potential GDP
a. True b. False Indicate whether the statement is true or false
If the minimum wage applies to one sector (the covered sector) but not another sector (the uncovered sector), an increase in the minimum wage in the covered sector is likely to result in which of the following?
A. less employment in the uncovered sector B. a lower wage in the covered sector C. workers willingly leaving the covered sector for the uncovered sector in search of higher wages D. a lower wage in the uncovered sector E. greater employment in the covered sector