The two words economists use most often are
a. inflation and trade.
b. supply and demand.
c. competition and prices.
d. markets and equilibrium.
b
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Which of the following is most likely to occur in the labor market during a recession?
A. The growth rate of real wages declines. B. New entrants to the labor market have an easier time finding jobs. C. Bonuses and promotions become more frequent. D. The supply of labor increases dramatically.
In country A, the government takes no action to influence the exchange rates of its currency with other currencies. The rate is determined by market forces. Country A is said to have a:
A) flexible exchange rate system. B) fixed exchange rate system. C) dirty-float exchange rate system. D) nominal exchange rate system.
Public goods arise because of externalities.
Answer the following statement true (T) or false (F)
When a government turns a deficit into a surplus we would expect
A) interest rates to rise. B) interest rates to decrease. C) the demand curve for loanable funds to shift rightward. D) that more investment is crowded out.