Which of the Following Would Increase the Gap in Wages

question 39

Multiple Choice

Which of the following would increase the gap in wages between skilled and unskilled workers?

• A)less technological progress of the kind we've experienced in the past 15 years
• B)new types of production technology that require workers to have more skills
• C)an increase in the costs of going to college
• D)all of the above
• E) none of the above

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Definitions:

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and high inflation, occurring simultaneously.

Demand-Management Policies

Strategies used by the government to influence the amount of aggregate demand in the economy, often through fiscal and monetary policies.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional intervention by the government or policymakers, such as progressive taxes and unemployment benefits.

Real GDP

Stands for Real Gross Domestic Product, which measures the value of all final goods and services produced within a country in a given period, adjusted for inflation.