When the Fed purchases government securities,
A) required reserves in the banking system decrease, leading to fewer loans being made.
B) required reserves in the banking system increase, leading to more loans being made.
C) the monetary base does not change.
D) excess reserves in the banking system decrease, leading to fewer loans being made.
E) excess reserves in the banking system increase, leading to more loans being made.
E
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If a union is able to restrict the supply of a non-union-made substitute product,
a. wages will increase but employment will decrease b. wages will increase and employment will increase c. wages will decrease but employment will increase d. wages will decrease and employment will decrease e. the demand for non-union labor will increase
When a supply and demand model is used to analyze the market for labor,
a. demand is generally no longer downward sloping. b. the wage rate is used on the vertical axis as the market price. c. employment is used on the horizontal axis as the market quantity. d. both b and c.
Which of the following would shift a market labor supply curve to the left?
a. a decrease in the price of output b. an increase in the price of output c. a labor-augmenting technological change d. better employment opportunities in a closely-related job
The increase in the quantity of labor supplied in response to a higher wage is called the:
A. income effect. B. substitution effect. C. price effect. D. labor effect.