Minimum wage laws contribute to structural unemployment by:
A. keeping wages below the market-clearing level.
B. forcing unemployed workers to take the first job offered to them.
C. allowing unemployed workers to search longer or less intensively for jobs.
D. keeping wages above the market-clearing level.
Answer: D
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Gross Domestic Product in 2013 was almost five times larger than it was in 1960 but it is important to note that
a. none of the growth represented more output. b. measurement of output omitted any effect of inflation. c. the population grew substantially over the same time period. d. graphs of output were unable to display such growth.
Which of the following equations is accurate?
a. money interest rate = real interest rate - inflationary premium b. real interest rate = money interest rate + inflationary premium c. real interest rate = money interest rate - inflationary premium d. real interest rate = money interest rate
An increase in the money supply tends to reduce investment.
a. true b. false
An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is the value of GDP?
A. $40 million B. $45 million C. $50 million D. $5 million