Sometimes unions can raise wages above what productivity increases would permit. When this happens, we can be sure that
A) the employment of union workers is increasing.
B) some union workers end up losing their jobs.
C) there is a redistribution of income from union workers to nonunion workers.
D) featherbedding will occur.
Answer: B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The shift of the budget line from cd to ab in the above figure is consistent with:
A) decreases in the prices of both M and N . B) an increase in the price of M and a decrease in the price of N . C) a decrease in money income. D) an increase in money income.
What is the difference between a command economy and a laissez-faire economy?
What will be an ideal response?
The aggregate supply curve is
a. a curve showing the quantities of total output that business will purchase for investment at various price levels. b. a curve showing the quantities of total output that will be offered for sale at various price levels. c. a curve showing the quantities of goods and services that households will provide at various price levels. d. one point on the aggregate expenditure curve.