The experience of the United States and other industrialized countries in the 1930s contradicts the classical view of the labor market where the money wage adjusts quickly to maintain full employment. On this issue
a. the Keynesians agree but the monetarists disagree.
b. the monetarists agree but the Keynesians do not agree.
c. both the Keynesians and monetarists are in agreement.
d. neither the Keynesians nor the monetarists agree.
C
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Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The supply of labor decreases. E) The demand for labor is perfectly elastic.
According to new growth theory,
A) growth in real GDP per capita occurs only if there are increasing returns. B) technological change is influenced by economic incentives. C) economic growth is determined by forces outside the control of the market system. D) centrally-planned economies are the most efficient.
Assume a consumption function of C = 90 + .75Y. The saving function for this economy is equal to
A) 90 + .25Y. B) -90 + .75Y. C) -90 + .25Y. D) 90 + .75Y.
A positive effect of opening up countries to international trade is that it results in the creation of supporting industries that provide resources to the industry in which trade takes place
a. True b. False Indicate whether the statement is true or false