Increasing wage inequality results when international trade leads to ________ wages for workers in exporting industries and ________ wages for workers in importing industries.
A. higher; lower
B. higher; higher
C. lower; no change in
D. lower; higher
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then
a. both the quantity supplied and demanded of labor will increase. b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease. c. both the quantity supplied and demanded of labor will decrease. d. the quantity of labor supplied and demanded would remain constant.
The Lorenz curve shows
A) how poverty rates change over time. B) the percentage of population below the poverty line. C) the degree of inequality in the income distribution. D) the ratio of cash income to payments-in-kind.
John Maynard Keynes's contribution to our understanding of the economy was to show that an economy can be in equilibrium with high levels of unemployment
Indicate whether the statement is true or false