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question 71

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Understand the effects of minimum wage policies on employment and labor market dynamics.
Be familiar with the legal and organizational structure of unions and labor laws in the United States.
Understand the impact of New Deal policies on American society and its various demographic groups.
Identify key legislative changes during the New Deal era and their outcomes.

Definitions:

Consumption

The act of using up goods and services by households or individuals, leading to a decrease in their quantity.

Marginal Propensity

The ratio of a change in consumption (or saving) to a change in income, indicating how much of an income change individuals will spend or save.

Disposable Income

The amount of money available for savings or expenditure after all taxes and social security fees have been deducted.

Induced Consumption

Consumption that changes in response to changes in income or wealth, as opposed to autonomous consumption, which does not change when income changes.

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