Which of the following is binding?
a. QD
b. QS
c. WE
d. WMIN
d. WMIN
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Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then
a. both the quantity supplied and demanded of labor will increase. b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease. c. both the quantity supplied and demanded of labor will decrease. d. the quantity of labor supplied and demanded would remain constant.
Regarding the issue of economic stability, nonactivists believe that
a. consumption is highly unstable over the business cycle. b. the highest possible level of investment must be maintained over all phases of the business cycle. c. minor economic disturbances often feed on themselves, leading to severe swings in the business cycle. d. the self-correcting properties of a market economy work reasonably well.
If prices have been rising since the base year for GDP (which was years ago), which will be smaller?
A. nominal GDP B. real GDP C. cannot say
How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
A) The demand for the yen will fall, and the supply of the yen will increase. B) The demand for the yen will increase, and the supply of the yen will fall. C) The demand for the yen will fall, and the supply of the yen will fall. D) The demand for the yen will increase, and the supply of the yen will increase.