Which of the following statements is correct?
a. If unions successfully bargain for higher wages for their union members, employment among union members will increase.
b. Wages are higher in nonunion jobs than in union jobs of comparable skill
c. The efficiency wage model asserts that higher wages will lead to higher productivity.
d. The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor.
c
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A banking panic is an episode in which:
A. commercial banks, concerned about high interest rates, rush to borrow at the Federal Reserve discount rate. B. commercial banks, fearing Federal Reserve sanctions, unwillingly participate in open-market operations. C. depositors, afraid of increasing interest rates, attempt to engage in discount-window borrowing at the Federal Reserve. D. depositors, spurred by news or rumors of possible bankruptcy of one bank, rush to withdraw deposits from the banking system.
The aggregate demand curve tells us the equilibrium level of real GDP corresponding to any price level
a. True b. False
Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused
a. an increase in demand for housing and higher housing prices. b. an increase in demand for housing and lower housing prices. c. a reduction in demand for housing and higher housing prices. d. a reduction in demand for housing and lower housing prices.
In a competitive labor market, if the demand for labor increases, labor demand will shift to the:
A. left and wages will decrease. B. left and wages will increase. C. right and wages will decrease. D. right and wages will increase.