Which of the following most clearly indicates that fiscal policy is becoming more restrictive?
a. An increase in the budget deficit relative to GDP
b. A reduction in the budget deficit relative to GDP
c. An increase in government expenditures as a share of GDP
d. A reduction in tax revenues as a share of GDP
B
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If the percentage increase in nominal wage rates is less than the percentage increase in the price level, then:
a. real wage rate rises and the unemployment rate falls. b. both real wage rate and the unemployment rate rises. c. both real wage rate and the unemployment rate falls. d. real wage rate rises and the unemployment rate remains unchanged. e. both real wage rate and the unemployment rate remains unchanged.
If there is employment discrimination against minorities, this will cause the
a. supply of their services to increase, and their wages to fall. b. demand for their services to decline, and their wages to fall. c. supply of their services to decline, and their wages to rise. d. demand for their services to decline, and their wages to rise.