Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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Refer to Table 20-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015
A) $9 B) $9.52 C) $10 D) $12
Those who oppose minimum wage legislation argue that:
A. setting a wage above the market-clearing equilibrium creates unemployment. B. it should be set below the market-clearing equilibrium. C. workers deserve a basic standard of living. D. the way to get an efficient labor market is for government intervention.
Under a system of fixed exchange rates, what will happen if the price of a currency is set above market equilibrium? How can this be remedied?
A marginal rate of substitution formula tells us:
A. the rate at which the consumer is willing to exchange one good for another, given the level of utility. B. the rate at which the consumer is willing to exchange one good for another, given the amounts consumed. C. the rate at which the consumer is willing to exchange one good for another, given the consumer's income. D. the rate at which the consumer is willing to exchange one good for another, given the prices of the goods.