In practice, money supply and short-term interest rates are determined by the
a. Treasury and Commerce departments.
b. Federal Open Market Committee.
c. Board of Governors.
d. House and Senate.
b
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Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost. The type of unemployment facing Fred is: a. frictional. b. structural. c. cyclical
d. natural.
Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?
a. Workers in the market are unskilled and not represented by a union, and their wage exceeds both the equilibrium wage and the minimum wage. b. Workers in the market are highly skilled and not represented by a union, and their wage exceeds the minimum wage. c. Workers in the market are highly skilled and represented by a union, and their wage exceeds the equilibrium wage. d. Employers in the market are known for reducing the workers' wage whenever they get an opportunity to do so.
A fruit picker is most likely to be
What will be an ideal response?
One way inflation reduces aggregate demand is by:
A. increasing wealth. B. increasing nominal GDP. C. increasing velocity. D. reducing real balances.