The government makes all economic decisions in a mixed economy
Indicate whether the statement is true or false
FALSE
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The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that
A) workers' effort may depend on the unemployment rate and the real wage. B) during a recession, labor supply will decrease, reducing the efficiency wage. C) during a recession, productivity will fall, causing a reduction in the efficiency wage. D) during a boom, labor demand will increase, causing the efficiency wage to rise.
Fiscal policy is the use of government spending and taxation to make changes in the level of national income
Indicate whether the statement is true or false
Which of the following is false?
A) Under free banking, banks would not be subject to any special regulations beyond those which are required of other businesses. B) Under free banking, banks would be allowed to issue their own currency. C) The government would largely control the actions of banks under free banking. D) The market forces would raise or lower the money supply under free banking.
Given the demand and supply conditions shown in Figure 4-2, if the government imposes a price ceiling of a, indicate the quantity consumers would like to buy and the amount producers would be willing to supply.
a. Consumers would want to buy t; producers would be willing to sell r. b. Consumers would want to buy r; producers would be willing to sell t. c. Consumers would want to buy t; producers would be willing to sell s. d. Consumers would want to buy s; producers would be willing to sell s.