When labor is substitutable between two markets, we should expect:
A. the two markets to pay the same or similar equilibrium wage.
B. those markets to produce substitutable outputs.
C. the workers in the two markets to commit to one at the start of their career and stick with it, despite the similarities.
D. All of these statements are true.
A. the two markets to pay the same or similar equilibrium wage.
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To close an expansionary gap, the Fed ________ interest rates which ________ aggregate spending and ________ short-run equilibrium output.
A. raises; decreases; increases B. raises; decreases; decreases C. raises; increases; increases D. reduces; increases; decreases
The practice of securitization of mortgages:
A. pooled high-risk mortgages together, which raised the prices of them to investors. B. allowed investors to profit from the mortgage payments without being exposed to any risk. C. pooled the risk of mortgages, allowing higher risk mortgages to be more safely sold to investors. D. was undertaken by government to guarantee the values of real estate.
The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%. B. remained below 1.3% as a result of effective Federal Reserve monetary policy. C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%. D. fluctuated between 1.3 and 14%, often catching many people by surprise.
A factor of production that is produced in order to produce something else is called:
A) money. B) labor. C) technology. D) capital.