the effect on the size of the spending multiplier, when the investment has an autonomous component and a component that varies directly with the level of real GDP . Concept Introduction: Government purchases: Government purchases are the tools of fiscal policy by which government increase or decrease the aggregate demand of the economy and control the macroeconomic indicators like inflation, unemployment , GDP growth rate.

Question

Which of the following factors tend to decrease the wage differential between union and non union workers: unions tend to organize the firms with the lowest ability to pay initially all of the above unions must moderate their wage demand to keep workers competitive some nonunion employers pay their employees above union wages only ‘a’ and ‘b’ above

Answer 1

Question

Chapter 11, Problem 6P

To determine

the effect on the size of the spending multiplier, when the investment has an autonomous component and a component that varies directly with the level of real GDP.

Concept Introduction:

Government purchases: Government purchases are the tools of fiscal policy by which government increase or decrease the aggregate demand of the economy and control the macroeconomic indicators like inflation, unemployment, GDP growth rate.

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Which of the following factors tend to decrease the wage differential between union and non union workers: unions tend to organize the firms with the lowest ability to pay initially all of the above unions must moderate their wage demand to keep workers competitive some nonunion employers pay their employees above union wages only ‘a’ and ‘b’ above

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