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

Author Question: New classical macroeconomic theory emphasizes the role of sticky prices in the economy. Indicate ... (Read 57 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
on: Jun 29, 2018
New classical macroeconomic theory emphasizes the role of sticky prices in the economy.
 
  Indicate whether the statement is true or false

Question 2

Explain what would happen if the equilibrium wage in the labor market was below the legislated minimum wage.
 
  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

livaneabi

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

In this case the likely result will be unemployment. The higher wage will attract new entrants to the labor force (that is quantity supplied of labor will rise) but firms will hire fewer workers (the quantity demanded for labor will drop).


dollx

  • Member
  • Posts: 558
Reply 2 on: Jun 29, 2018
Gracias!

bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

MacArthur and Wilson's theory of island biogeography. MacArthur and Wilson's theory of island biogeography.
The size of the antlers play a significant role in establishing the hierarchy in the group The size of the antlers play a significant role in establishing the hierarchy in the group
Role of the SMA in Execution of Behavioral Sequences Role of the SMA in Execution of Behavioral Sequences
According to Kohlberg’s theory, only a few individuals, such as Martin Luther King, Jr. (left) and ... According to Kohlberg’s theory, only a few individuals, such as Martin Luther King, Jr. (left) and ...
North America and the Global Economy North America and the Global Economy
Japan’s Economy and Society Japan’s Economy and Society
Video: Anaphylaxis Animation

For a complete list of videos, visit our video library