When the minimum wage is set below the market equilibrium wage, it does not affect the market.
Answer the following statement true (T) or false (F)
True
If a price floor, a minimum established price, is below the equilibrium, the market will reach equilibrium, and there will be no pressure for prices to decrease beyond that point.
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Refer to Figure 4.2. The dominant strategy for Ferris is to
A) go to the movie theater. B) go to the bowling alley. C) go to either the movie theater or to the bowling alley. D) Ferris does not have a dominant strategy.
Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase taxes. B) increase the money supply and decrease the interest rate. C) increase government spending. D) increase oil prices. E) raise interest rates.
A chain-weighted index:
A. is used to understate the rate of inflation. B. uses neighboring years' data to calculate changes in nominal GDP. C. calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth. D. is a useful tool for determining which fence to purchase.
The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called
A. the aggregate demand curve. B. the price level curve. C. the aggregate supply curve. D. the employment curve.