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 79 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
YES! Correct, THANKS for helping me on my review

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Hydrostatic Equilibrium Hydrostatic Equilibrium
Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the
Percentage of higher-income Canadian households Percentage of higher-income Canadian households
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Postreplication repair occurs if DNA replication Postreplication repair occurs if DNA replication
Immune-to-brain signaling occurs in response to infection, injury, and inflammation that occur in pe Immune-to-brain signaling occurs in response to infection, injury, and inflammation that occur in pe
Video: Activation Energy - Valence Electrons

For a complete list of videos, visit our video library