A: additional resources (especially labor) can be hired to produce additional output with little or no increase in existing prices
B: wages fall rapidly with an increase in unemployment, reducing spending and income to restore equilibrium
C: firms lower wages less than prices to avoid a loss in profit during a recession
D: the nominal wage adjustment occurs fairly rapidly
E: nominal wages and prices always change proportionally, leaving the real wage rate unchanged
举一反三
- An increase in government purchases will NOT increase the level of output if A: the AS-curve is totally price elastic B: the price level is fixed C: wages and prices are completely rigid D: wages and prices are completely flexible E: real money balances are not affected
- What is the result of a tighter labor market? A: It can produce wage growth. B: It can increase unemployment rate. C: It can produce wage reduction D: It can lower unemployment rate
- As the economy enters a boom we can generally expect that A: inflation will decrease with little change in the unemployment rate B: unemployment will increase and inflation will decrease C: nominal GDP will increase but only because of an increase in the price level D: inflation will increase and the unemployment rate will decrease E: output will increase with little change in unemployment or inflation
- Which of the following assumptions is crucial to the classical model but not the Keynesian model? A: The real wage always equals the marginal product of labor. B: Real wages are perfectly flexible. C: Nominal wages are perfectly flexible. D: Monetary policy primarily affects aggregate demand.
- An increase in the population and hence the supply of labor causes a A: shortage of labor at the original real wage rate and the real wage rate will fall. B: surplus of labor at the original real wage rate and the real wage rate will rise. C: surplus of labor at the original real wage rate and the real wage rate will fall. D: shortage of labor at the original real wage rate and the real wage rate will rise.
内容
- 0
An increase in taxes on labor income shifts the labor supply curve ________ and the ________. A: leftward; after-tax wage rate falls B: rightward; before-tax wage rate rises C: leftward; after-tax wage rate rises D: rightward; before-tax wage rate falls
- 1
The slope of the AS-curve becomes steeper A: as nominal wages become more flexible B: as nominal wages become more rigid C: as the actual level of output moves further away from potential output D: as the economy approaches full employment E: both A) and D)
- 2
The replacement ratio is A: the reservation wage divided by the wage rate offered on a new job B: the reduction in real GDP caused by a 1 percent reduction in unemployment benefits C: after-tax income while unemployed divided by after-tax income while employed D: the wage rate offered on a new job divided by unemployment benefits E: the increase in the unemployment rate caused by a 1 percent increase in the inflation rate
- 3
Labor contracts that include so-called COLA provisions A: tend to link money wages to price increases B: serve to preserve the purchasing power of workers C: are a common form of wage indexation in many labor markets D: often tie nominal wages to a specific price index E: all of the above
- 4
If an increase in aggregate demand causes prices to increase slightly but output to increase significantly, then A: the AS-curve must be very flat B: the AD-curve must be very steep C: the AD- and AS-curves must both be very steep D: we must be looking at the very long-run AD-AS model E: we must be looking at the very short-run AD-AS model