Question 1
Which of the following was a consequence of deindustrialization?
a. Blue-collar workers were transferred by corporations into higher-paying, service-oriented positions.
b. Many blue collar workers lost their jobs in the automobile and steel industries and found that the new jobsbeing created were in the lower paying service sector.
c. The salaries for traditionally female jobs in the service sector of the economy rose substantially.
d. Minimum-wage and part-time jobs became more and more scarce, putting an additional burden on retireesand students.
Question 2
According to the tenets of monetary theory, which of the following is a prescription for reducing inflation?
a. If less money is available, price increases will slow and the inflationary spiral will end.
b. Credit can be eased by lowering interest rates, thus allowing the supply of money to grow quickly.
c. Increased federal spending will spur economic expansion, reduce unemployment, and increase personalspending.
d. Reduced federal taxes will give consumers more buying power.
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