The substitution effect of a price increase causes a decrease in the quantity of an inferior good demanded
Indicate whether the statement is true or false
TRUE
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The unemployment rate tells us
A) the fraction of people who want to be working but are not. B) the fraction of people who are not working and do not want to be working. C) the fraction of people who are not working and have quit looking for jobs. D) all of the above
How are potential GDP, full employment and the LAS curve related?
What will be an ideal response?
The increase of the real money supply by 10% by the Federal Reserve when the unemployment rate rises by 1% is an example of
A) the conduct of procyclical monetary policy. B) the utilization of feedback policy rule. C) the utilization of rigid policy rule. D) the conduct of nondiscretionary fiscal policy.
Which of the following is an example of an efficiency wage?
a. an addition the government makes to some workers' wages in order to reduce poverty b. an equilibrium wage paid to workers who work part time and so are exempt from the minimum wage c. paying higher wages to workers doing dangerous tasks d. an above equilibrium wage paid to workers to reduce shirking