Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. A shift from ppf1 to ppf2 may be caused by
A. an increased desire for consumer goods.
B. a change in consumer tastes.
C. an improvement in technology.
D. an increase in inflation.
Answer: C
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The earnings test reduces the amount of Social Security payments a retiree can collect unless she or he is under 60.
Answer the following statement true (T) or false (F)
Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply. B) too low. C) above the market wage, causing labor demand to be greater than labor supply. D) below the market wage, causing labor demand to be less than labor supply. E) above the market wage, causing labor demand to be less than labor supply.
The balanced budget multiplier is always equal to:
a. 0.50. b. 0.75. c. 1 / MPC. d. 1.
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A. inventory is accumulated. B. inventory is unchanged. C. employment decreases. D. employment increases.