Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level.
B) The real wage rate is equal to the equilibrium level.
C) An increase in unemployment benefits.
D) The real wage rate is above the equilibrium level.
E) Job search decreases.
Question 2
U.S. labor productivity slowed during the 1970s because of
i. increasing government taxes and regulations on production.
ii. the necessity to cope with energy price increases.
iii. inflation, which shortened the horizon over which businesses made their borrowing plans.
A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
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