A minimum wage set above the equilibrium wage rate has no effect
Indicate whether the statement is true or false
FALSE
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. B; C B. B; A C. A; B D. A; C
The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills
Indicate whether the statement is true or false
What is the multiplier? If MPC =0.75, what is the value of the multiplier in the simple model of the economy?
What will be an ideal response?
If a country fixes the exchange-rate value of its currency, it will have to
a. follow a highly expansionary monetary policy in order to maintain the convertibility of its currency. b. give up its monetary independence in order to maintain the convertibility of its currency. c. fix its domestic interest rates in order to maintain the convertibility of its currency. d. raise taxes in order to maintain the convertibility of its currency.