A price cap regulation ________
A) is illegal
B) is a price floor
C) is a price ceiling
D) encourages a firm to operate inefficiently
C
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Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
The inflation rate that is used to set the money wage rate and other money prices is the
A) actual inflation rate. B) cost of living inflation rate. C) natural inflation rate. D) expected inflation rate. E) wage inflation rate.
If the Federal Reserve takes no countervailing actions, an expansionary fiscal policy will increase the deficit, increase GDP, increase prices, and drive up interest rates
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to reduce the market wage rate in a job category?
a. The job is widely viewed as dangerous. b. The job requires employees to move from city to city quite often. c. The job requires substantial out-of-town travel. d. Employees have considerable flexibility in choosing their work hours.