Which of the following is correct?
a. Nearly all economists believe that unions are bad for the economy as a whole.
b. Unionized firms pay wages above the competitive equilibrium level.
c. Unions increase the level of employment in unionized firms.
d. Unions decrease the level of employment in firms without unions.
b
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Economists predicted that the price of a depletable natural resource would rise by about 15 percent. Actually the price fell 10 percent. What most likely happened?
A. A government subsidy was removed. B. Extraction costs increased. C. Price controls were suspended. D. An unexpected discovery of reserves was made.
When self-correction works to eliminate an expansionary gap, _____
a. both money wages and real wages increase b. money wages increase while real wages decrease c. both money wages and real wages decrease d. money wages decrease while real wages increase e. money wages remain unchanged
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000 B. $12,500 C. $37,500 D. $40,000
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease