Refer to Figure 2-14. Points A, B, and D represent feasible outcomes for this economy.
Indicate whether the statement is true or false.
Answer: True
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Capital gains tax cuts inevitably benefit
a. low-income workers. b. retired persons. c. workers in large cities. d. high-income stock owners.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in real money supply:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate rises and the quantity per time period does not change. d. The real risk-free interest rate is uncertain and the quantity per time period is uncertain. e. The real risk-free interest rate falls and the quantity per time period falls.
Which of the following would not interfere with market equilibria?
a. a minimum wage b. a rent control c. a non-binding price floor d. a binding price ceiling
Which of the following events can not cause the labor-supply curve to shift?
a. a change in people's attitudes toward work b. an increase in the price of output c. a change in workers' alternative opportunities d. an increase in the rate of immigration