Consider the Following Simple Macro Model with a Constant Price

question 48

Multiple Choice

Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9 , = 0.8Y,I = 400,G = 700,T = (0.2) Y,X = 130,IM = (0.08) Y.Equilibrium national income is

• A)1380.00.
• B)1916.67.
• C)2156.25.
• D)3833.33.
• E)4928.57.

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Definitions:

Better Wages

An improvement in the compensation that workers receive for their labor, often a key objective of labor unions and worker advocacy groups.

National Labor Relations Act

A foundational piece of U.S. legislation, established in 1935, that protects workers' rights to organize, to bargain collectively, and to engage in other activities related to collective bargaining and mutual aid.

Employer's Willingness

An indication of how open or receptive an employer is to engaging in practices such as negotiations, improvements, or concessions in the workplace.

Closed Shop Arrangements

Employment practices where only members of a labor union can be hired and remain employed.