Discuss the impact of efficiency wages on unemployment and wage inflexibility
Because the efficiency wage rate is greater than the equilibrium wage rate, the quantity of labor that would be willingly supplied is greater than the quantity of labor demanded, resulting in greater amounts of unemployment. However, aside from creating some additional unemployment, the efficiency wage could also cause wages to be inflexible downward.
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Shocks and Integration) The graph shows hypothetical OCA economic criteria for several South American countries. Using the graph, which of the following best satisfy the OCA criteria for forming a monetary union?
A) Peru and Colombia B) Peru and Uruguay C) Venezuela and Uruguay D) Colombia and Venezuela
According to the textbook, the union wage premium for workers with the same amount of human capital is about ________.
A. 30 percent B. 20 percent C. 40 percent D. 10 percent
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.
When the Fed buys bonds, the money supply increases.
Answer the following statement true (T) or false (F)