If, as a result of imperfect information, firms set their wage rates below the market clearing wage rate
A. there will be a shortage of workers.
B. there will be a surplus of workers.
C. unemployment increases.
D. there will be equilibrium in the labor market.
Answer: A
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In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in
A. taxes or an increase in government spending. B. government spending or an increase in taxes. C. saving or an increase in government spending. D. interest rates or a decrease in taxes.
The Monetary Control Act of 1980:
a. allowed savings and loan associations to offer checking accounts. b. allowed more institutions to offer checking account services. c. created greater competition among various financial institutions. d. all of the above. e. none of the above.
Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period
According to Ricardian equivalence advocates, if the government announces a plan to balance the budget by reducing its deficits to zero, then the private sector will:
A. decrease consumption. B. decrease investment. C. increase savings. D. decrease savings.