An expansionary gap creates labor shortage that eventually results in a higher nominal wage and a lower price level
Indicate whether the statement is true or false
false
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Suppose a budget line is drawn with X on the horizontal axis and Y on the vertical axis. A decrease in the price of X will cause:
a. an increase in the vertical intercept and no change in the horizontal intercept. b. a decrease in the vertical intercept and no change in the horizontal intercept. c. an increase in the horizontal intercept and no change in the vertical intercept. d. a decrease in the horizontal intercept and no change in the vertical intercept. e. a parallel, rightward shift of the budget line.
Small differences in growth rates can create large differences in income levels because of:
A. Say's Law. B. specialization. C. compounding. D. the division of labor.
A person who is in between jobs but actively engaged in a job search is considered to be
What will be an ideal response?
One of the consequences of the overstatement of the CPI is that
A. the poverty line is lower than it would otherwise be. B. Social Security taxes are lower than they would otherwise be. C. Social Security payments are higher than they would otherwise be. D. personal income taxes are higher than they would otherwise be.