The government passes a law which doubles the wages of all workers. Aggregate supply will ________, and real GDP will ________, and the price level will ________
A) increase; remain the same; increase.
B) remain the same; increase; increase.
C) increase; increase; remain the same.
D) decrease; increase; increase.
E) decrease; decrease; increase.
E
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An increase in per capita income will generally lead to
a. more material goods, but a decline in the quality of the environment. b. a reduction in life expectancy because working conditions are less desirable. c. an increase in the number of hours worked by residents. d. an increase in the living standards of most people.
Define the terms financial sector and real sector. Describe the processes by which a number of banks becoming insolvent (or approaching insolvency) can have an adverse impact on the real sector
An unexpected decrease in nonlabor income will have a negative effect on a household's consumption.
Answer the following statement true (T) or false (F)
A monetarist would advocate ________ money supply during recessions and ________ money supply during periods of high inflation.
A. increasing; increasing B. increasing; decreasing C. decreasing; increasing D. none of the above