20. For this question, assume that Y = N . B2sed on our understanding of the !abor market model presented in Chapter 6, we know that an increase in the minimum wage will cause A) an increase in the natural level of output. B) a reduction in the natural level of output. C) no change in the natural level of output. D) an increase in the natural level of employment.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question

answers for this questions

20. For this question, assume that Y = N. B2sed on our understanding of the !abor
market model presented in Chapter 6, we know that an increase in the minimum wage
will cause
A) an increase in the natural level of output.
B) a reduction in the natural level of output.
C) no change in the natural level of output.
D) an increase in the natural level of employment.
21. Assume the economy is initially operating at the natural level of output. Which of
the following events will NOT change the composition of output (i.e., the percentage
of GDP composed of consumption, investment, ... etc.) in the medium run?
A) a reduction in government spending
B) a cut in taxes
C) a reduction in the desire to save
D) an increase in consumer confidence
E) an increase in the money supply
22. Suppose a central bank implements a monetary contraction. Which of the
following would we expect to occur in the medium run? Assume that initially the
economy is at the medium run equilibrium.
A) a decline in output
B) an increase in the price expectations
C) a decrease in the nominal wage rate
D) a decrease in investment
5
23. Which of the following statements is NOT correct?
A) Any shifts of the IS curve will shift the AD curve
B) Any shifts of the LM curve will shift the AD curve
C) Any shifts of the WS curve will affect the natural unemployment rate, assuming
that Y=N.
D) Any shifts of the PS curve will affect the natural level of output, assuming that
Y=N.
24. Which of the following statements is NOT correct?
A) Each AS curve is associated with one particular level of price expectations.
B) All points along the AS curve are short-run equilibrium points in the labor market.
C) Price expectations are always accurate along the AS curve.
D) Only one point along the AS curve is the medium run equilibrium in the labor
market.
25. Suppose fiscal policy makers implement a policy to reduce a budget deficit.
Which of the following would occur, assuming initially the economy produces the
natural level of output
A) Output increases in the short run
B) Price expectation increases before the economy reaches the new medium-run
equilibrium.
C) Real wage rate increases in the medium run.
D) investment spending increases in the medium run.
Transcribed Image Text:20. For this question, assume that Y = N. B2sed on our understanding of the !abor market model presented in Chapter 6, we know that an increase in the minimum wage will cause A) an increase in the natural level of output. B) a reduction in the natural level of output. C) no change in the natural level of output. D) an increase in the natural level of employment. 21. Assume the economy is initially operating at the natural level of output. Which of the following events will NOT change the composition of output (i.e., the percentage of GDP composed of consumption, investment, ... etc.) in the medium run? A) a reduction in government spending B) a cut in taxes C) a reduction in the desire to save D) an increase in consumer confidence E) an increase in the money supply 22. Suppose a central bank implements a monetary contraction. Which of the following would we expect to occur in the medium run? Assume that initially the economy is at the medium run equilibrium. A) a decline in output B) an increase in the price expectations C) a decrease in the nominal wage rate D) a decrease in investment 5 23. Which of the following statements is NOT correct? A) Any shifts of the IS curve will shift the AD curve B) Any shifts of the LM curve will shift the AD curve C) Any shifts of the WS curve will affect the natural unemployment rate, assuming that Y=N. D) Any shifts of the PS curve will affect the natural level of output, assuming that Y=N. 24. Which of the following statements is NOT correct? A) Each AS curve is associated with one particular level of price expectations. B) All points along the AS curve are short-run equilibrium points in the labor market. C) Price expectations are always accurate along the AS curve. D) Only one point along the AS curve is the medium run equilibrium in the labor market. 25. Suppose fiscal policy makers implement a policy to reduce a budget deficit. Which of the following would occur, assuming initially the economy produces the natural level of output A) Output increases in the short run B) Price expectation increases before the economy reaches the new medium-run equilibrium. C) Real wage rate increases in the medium run. D) investment spending increases in the medium run.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,