A winner-take-all labor market is one in which:
A. large differences in human capital translate into small differences in wages.
B. small differences in human capital translate into small differences in wages.
C. one worker receives all of the available compensation and the rest receive nothing.
D. small differences in human capital translate into large differences in wages.
Answer: D
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What will be an ideal response?
When inflation is very low, how do workers and firms adjust their expectations of inflation?
A) They tend to ignore inflation. B) They are more aggressive in asking for wage and price increases. C) They rapidly adjust their expectations of inflation downward. D) They rapidly adjust their expectations of inflation upward.
Other things the same, continued losses in technological ability and continued decreases in the money supply would unambiguously lead to
a) neither declining prices nor declining real GDP. b) declining real GDP only. c) declining prices only. d) declining prices and declining real GDP.
The money demand curve will shift to the right if:
A. the nominal interest rate increases. B. the price level decreases. C. the price level increases. D. the nominal interest rate decreases.