When calculating how much changes in the money supply will change nominal GDP, we use the money multiplier instead of the spending multiplier
a. True
b. False
Indicate whether the statement is true or false
False
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To be effective in raising people's wages, a minimum wage must be set
A) above the equilibrium wage rate. B) below the equilibrium wage rate. C) equal to the equilibrium wage rate. D) below $7. E) either above or below the equilibrium wage depending on whether the supply curve of labor shifts rightward or leftward in response to the minimum wage.
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $6 to $7:
A. total producer surplus would decrease. B. total producer surplus would increase. C. total producer surplus would remain unchanged. D. total producer surplus cannot be determined with the information given.
A market with an externality can
A. underproduce or overproduce a good. B. stabilize. C. operate efficiently without government intervention. D. move from a production point inside the production possibilities curve to a pareto optimal point.
If a city has 3293 unemployed people and 73,177 in its labor force, then the city's unemployment rate equals
A. 45.0%. B. 0.45%. C. 4.5%. D. 4.3%.