In the fooling model's labor market diagram, from an initial intersection point of the labor supply and demand curves, tracing "southwest" down the labor supply curve shows
A) what happens to real wages and employment when aggregate demand expands.
B) what happens to real wages and employment when aggregate demand contracts.
C) what workers think is happening to real wages if an aggregate demand contraction fools them.
D) what firms think is happening to real wages if an aggregate demand expansion fools them.
C
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Which of the following statements correctly highlights a difference between real GDP and nominal GDP?
A) Real GDP includes the value of goods and services produced by foreign firms, while nominal GDP does not. B) Real GDP strips out the effect of changing prices on the value of goods and services produced, while nominal GDP does not. C) Real GDP includes the value of goods and services produced by domestic firms in foreign countries, while nominal GDP does not. D) Real GDP does not take into account the value of goods produced and also services provided, while nominal GDP takes these into account.
Which of the following groups receives the highest wages?
A) high school drop-outs B) college drop-outs C) individuals who complete a bachelor's degree program D) individuals with advanced degrees
When goods are subject to market failure, all of the following are possible solutions to the market failure except:
A. change social norms. B. have government either regulate the market or provide the good. C. privatize the good. D. set a very specific consumer quota on consumption.
One impact of a rise in the dollar's value is that
A) imports become cheaper for the U.S. consumer. B) exports will increase sharply. C) U.S. goods will become cheaper overseas. D) U.S. goods are cheaper domestically.