Examlex
How would each of the following events affect the level of employment and the real wage rate?
a.A tremendous boom occurs in the stock market,increasing people's wealth by $100 billion overnight.
b.A major government loan-guarantee program goes bust,losing $500 billion.To pay off the loss,the government announced that tax rates will rise 30% in the future.
c.A nuclear mishap contaminates all auto plants in the Windsor area,destroying their capital.
d.Medical science cures the common cold,causing fewer work days lost to illness,thus greatly increasing labour productivity.
Q13: Expected future real wages would cause<br>A)the aggregate
Q19: A rise in the price of a
Q28: By 1937,when a new recession began in
Q50: An individual's labour supply curve might shift
Q55: The skilled-bias technological change means that<br>A)the recent
Q72: In 2001 national saving in the country
Q79: In the very long run,the level of
Q80: If real GDP falls by 1 percent,but
Q91: A decrease in the effective tax rate
Q100: The fact that the production function relating