Refer to Figure 12.4. Since the housing bubble burst and the economy returned to its initial, pre-bubble level before the corrective policy changed output, the impact of the change in policy is best represented as a movement from

If an individual receives $10,000 after two years by investing $10,000 today, we can conclude that ________

A) the rate of inflation is zero B) the market rate of interest is zero C) the rate of inflation is negative D) the market rate of interest is negative

Which of the following is the purpose of a minimum wage?

a. To reduce the wage rates of high-income workers b. To keep a track of the changes in the wage rate in an unskilled labor market c. To deal with the problem of unemployment in the market d. To help increase the profits earned by the producers e. To raise the wage rate for the lowest income workers