Which of the following best describes what W 2 represents in the context of a skill- biased technical change?
a. the new union wage
b. the new equilibrium wage
c. the new efficiency wage
d. the new minimum wage
b. the new equilibrium wage
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In new Keynesian theory, the pattern of inflation exhibited by an economy with growing aggregate demand known as inflation dynamics is
A) initially sluggish upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future. B) initially sluggish downward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future. C) initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future. D) initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future.
The above figure shows the market for pizza. The market is in equilibrium when some of the pizza firms go out of business. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
If toast and butter are complements, then which of the following would increase the demand for toast?
a. a decrease in the price of toast b. a decrease in the price of butter c. an increase in the price of butter d. Both a and b are correct.
The average agricultural tariff in the U.S. is about
A) 3 percent. B) 5 percent. C) 9 percent. D) 15 percent.