Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: lb_gilbert on Jun 30, 2018
-
Featherbedding allows unions to increase wages by:
a. limiting the supply of labor.
b. increasing firms' demand for labor.
c. forcing firms to accept higher-than-equilibrium wages.
d. reducing labor share of payroll taxes.
Question 2
When the government closes an expansionary gap with a change in government spending, the _____ in government spending leads to _____.
a. decrease; a decrease in both real GDP and the price level
b. decrease; a decrease in real GDP and an increase in the price level
c. decrease; an increase in both real GDP and the price level
d. decrease; an increase in real GDP and a decrease in the price level
e. increase; a decrease in both real GDP and the price level
-
Answer to Question 1
b
Answer to Question 2
a