What does the existence of labor unions mean for the labor market and for unemployment?
A. Wage rates could rise above equilibrium level.
B. Wage rates could fall below equilibrium level.
C. Unemployment could reach zero.
D. Unemployment could grow to unsustainable levels.
A. Wage rates could rise above equilibrium level.
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The Fed seeks a target rate of inflation of around _____
a. 1 percent b. 2 percent c. 3 percent d. 4 percent e. 5 percent
Say’s law and Keynes’ law can both be illustrated in the ______________ model.
a. input/output b. circular flow c. AD/AS d. neoclassical
Which statement is true?
A. The Federal Reserve buys nearly all its United States government securities directly from the Treasury. B. Open market operations are the buying and selling of United States government securities in the open market by the Federal Reserve. C. The least important policy tool used by the Federal Reserve to control the money supply is open market operations. D. None of the choices/statements are true.
Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry. b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price. c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers. d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.