When the economy is in a recessionary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________
A) shortage; rise; AD; rightward
B) shortage; fall; SRAS; leftward
C) surplus; rise; AD; rightward
D) shortage; fall; SRAS; rightward
E) surplus; fall; SRAS; rightward
E
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A tariff on imports affects foreign suppliers ____; a quota affects foreign suppliers ____.
A. effectively; ineffectively B. haphazardly; carefully C. equally; capriciously D. unfairly; fairly E. unequally; unequally
When consumers have less information about a product than do sellers, then this is the situation of
A) asymmetric information. B) symmetric information. C) caveat emptor. D) a market failure.
Suppose you earn $50 a week at your job. You like to go to movies and have dinner with friends. Movies cost $15 each and dinner is $20 each time you eat out. Which of the following combinations is attainable given your weekly budget?
A. 2 dinners and 2 movies B. 4 movies C. 2 movies and 1 dinner D. 3 dinners
What can explain the failure of relative PPP to hold in reality?
What will be an ideal response?