Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, the equilibrium quantity of health care employees would
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what happens to the equilibrium quantity.
a
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
The informal sector differs from the formal sector in that informal firms tend to
a. be larger b. be more capital intensive c. operate more apart from the usual laws and regulations d. produce goods and services not found elsewhere e. none of the above
The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI
a. broader; more b. broader; less c. narrower; more d. narrower; less
Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium
a. True b. False Indicate whether the statement is true or false