Which of the following is an important assumption about the labor market that is shared by both the original Keynesian model and the Friedman "Fooling Model?"
A) The supply of labor depends on expected real wages.
B) The demand for labor is a function of nominal wages.
C) Workers can be "off" their labor supply function in the short-run equilibrium.
D) Firms can be "off" their labor demand function in the short-run equilibrium.
C
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The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, which of the following is correct?
A) The total fixed cost is $1. B) The average fixed cost of 1 gallon is $1.00. C) The average variable cost of 2 gallons of ice cream is $1.00 per gallon. D) Only answers A and B are correct. E) Answers A, B, and C are correct.
In the above figure, suppose the demand for dollars permanently decreases to D2. To maintain the target, the Fed
A) can buy dollars. B) can sell dollars. C) must decrease the nation's net exports. D) cannot permanently maintain the exchange rate target of 150 yen per dollar.
Which of the following is NOT related to the government's political function of income redistribution?
A) providing money transfer payments B) excise tax on gasoline C) Social Security D) in-kind transfers
The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to
a. differences in education requirements. b. ability (mental) differences. c. a compensating differential. d. luck.