In the Keynesian model, the full-employment level of output is the amount of output produced when
A. the real wage exceeds the nominal wage.
B. labor is paid an efficiency wage, and the real wage equals the marginal product of labor.
C. the quantity of labor demanded equals the quantity of labor supplied.
D. the market wage exceeds the efficiency wage.
Answer: B
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Moral hazard occurs when buyers and sellers take actions to communicate quality in a world of uncertainty.
Answer the following statement true (T) or false (F)
What is the impossibility theorem?
What will be an ideal response?
If the Fed wants to reduce the value of the dollar, it will
A) sell foreign assets and buy dollars. B) sell dollars and buy foreign assets. C) buy foreign assets and also buy dollars. D) sell foreign assets and also sell dollars.
When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward
A) agriculture. B) manufacturing. C) services. D) population increases.