Which of the following is most likely to occur in the labor market during a recession?
A. The growth rate of real wages declines.
B. New entrants to the labor market have an easier time finding jobs.
C. Bonuses and promotions become more frequent.
D. The supply of labor increases dramatically.
Answer: A
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Use the above figure. This graph is known as
A) the Laffer curve. B) the short-run Phillips curve. C) the NAIRU relationship. D) the Keynesian curve.
In the real loanable funds market, the vertical and horizontal axes, respectively, are:
a. Nominal interest rate and nominal loanable funds. b. Real interest rate and real loanable funds. c. Real, risk-free interest rate and real loanable funds per time period. d. Real, risk-free interest rate and real loanable funds. e. None of the above.
The AFC curve
A. is a horizontal line. B. is the same as the total fixed cost curve. C. is U-shaped. D. always slopes downward.
If we start from long-run general equilibrium of goods, forex, and the money markets, and there is a temporary expansion of the money supply, what will be the outcome?
A) GDP rises, the interest rate falls, and the exchange rate rises (depreciation). B) GDP rises, the interest rate rises, and the exchange rate falls (appreciation). C) GDP falls, the interest rate falls, and the exchange rate rises (depreciation). D) GDP falls, the interest rate rises, and the exchange rate rises (depreciation).