This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Equilibrium expenditure occurs when A) real GDP minus net taxes equals disposable income. B) ... (Read 89 times)

altibaby

  • Hero Member
  • *****
  • Posts: 562
on: Jun 29, 2018
Equilibrium expenditure occurs when
 
  A) real GDP minus net taxes equals disposable income.
  B) disposable income equals consumption expenditures plus imports.
  C) disposable income equals real GDP.
  D) aggregate planned expenditure equals real GDP.
  E) real GDP plus net taxes equals disposable income.

Question 2

What factors can lead the real wage rate to be above its full-employment equilibrium level?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Dinolord

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

There are at least three reasons why the real wage rate might be above its equilibrium level. First, firms might pay an efficiency wage, which is a wage rate set above the full-employment equilibrium wage rate in order to induce greater work effort from workers. Second, a minimum wage law might set a minimum wage that is above the full-employment equilibrium wage rate. Finally, a union might negotiate a wage rate that is above the full-employment equilibrium level.


altibaby

  • Member
  • Posts: 562
Reply 2 on: Jun 29, 2018
Excellent

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Meningocele. (a) A meningocele is a herniation of the meninges, usually associated with the spinal c Meningocele. (a) A meningocele is a herniation of the meninges, usually associated with the spinal c
Disposable plastic cover placed over probe Disposable plastic cover placed over probe
The Abecedarian study was designed to help very low-income African American children prepare for ... The Abecedarian study was designed to help very low-income African American children prepare for ...
Sources of income for U.S. population aged 65 and over. Sources of income for U.S. population aged 65 and over.
Income per Capita versus Inequality Income per Capita versus Inequality
How wide must a narrow slit be if the first diffraction minimum occurs at 12 with laser light ... How wide must a narrow slit be if the first diffraction minimum occurs at 12 with laser light ...
Video: Phases of an Action Potential - Resting Potential, Threshold, Rising, Falling, & Recovery Phases

For a complete list of videos, visit our video library