The number of unskilled workers employed before and after a change in the minimum wage is found to be the same. This means
A) the minimum wage change did not affect the unskilled labor market.
B) nothing, unless we also know that the number of hours worked by each worker has not changed.
C) the minimum wage could be below the equilibrium wage for unskilled labor.
D) either b or c
E) none of the above
D
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When economic growth is compared between countries, the best measure to use is
A) nominal GDP. B) real GDP. C) chain-weighted GDP. D) real GDP per capita.
If unemployment benefits became more generous it would be likely to _____ frictional unemployment and _____ the natural rate of unemployment:
a. Increase; increase b. Increase; not change c. Not change; increase d. Increase; decrease
The fact that travel on buses fell as incomes increased in many cities suggests that
a. bus travel is a normal good b. the law of demand does not apply to bus travel c. bus travel is an inferior good d. there are no good substitute goods for bus travel
Answer the following statement(s) true (T) or false (F)
1. The aggregate demand curve can shift to the right or left due to changes in price levels. 2. A decrease in a nation’s population will increase aggregate demand. 3. A fall in incomes abroad can reduce U.S. net exports and cause a leftward shift in the U.S. aggregate demand curve. 4. Input prices are said to be sticky in the long run. 5. The misperception effect involves a false perception about relative prices.