In a competitive labor market, a minimum wage law set above the equilibrium wage rate
A) creates a shortage of labor.
B) causes equality between the quantity of labor supplied and the quantity demanded.
C) creates a surplus of labor.
D) lowers the wage rate paid to workers.
E) has no impact.
C
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If a person's nominal income increases by 10% while the price level increases by 6%, the person's real income:
a. Increases by 4% b. Decreases by 2% c. Increases by 14% d. Increases by 2%
Which of the following is true in the short run?
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. The Federal Reserve could target both the money supply and the interest rate at the same time if it controlled money demand along with money supply. 2. Inflation targeting has been adopted by the central banks of several countries including the European Central Bank. 3. Inflation targeting has typically been accompanied by lower inflation.
The Heckscher-Ohlin model is an alternative to the classical theory of international trade that focuses on the factors of production that countries possess
Indicate whether the statement is true or false