In the Keynesian model with efficiency wages
A) the full-employment line is determined where the quantity of labor demanded equals the quantity of labor supplied.
B) the full-employment level is determined at the intersection of the labor demand curve and the efficiency wage line.
C) an increase in labor supply increases employment.
D) a decrease in labor supply shifts the FE line to the left.
B
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If the unemployment rate increases from 4 percent to 10 percent, then the economy is mostly likely in a(n):
A. expansion. B. boom. C. aggregation. D. recession.
The U.S. interest rate minus the foreign interest rate is called the ________
A) foreign interest rate differential B) U.S. bond rate differential C) U.S. interest rate differential D) U.S. stock yield differential
A drought destroys much of the grape crop. As a result, consumer surplus in the market for wine:
a. decreases. b. increases. c. remains unchanged. d. depends on the deadweight loss.
What will arise when negative externalities are present in a market?
a) Government will regulate the externalities in the market. b) Private costs will be greater than social costs. c) The market will not be able to reach any equilibrium situation. d) Social costs will be greater than private costs.