Wage and price stickiness
A. creates a surplus or a shortage of real GDP.
B. give rise to a vertical long-run aggregate supply curve.
C. give rise to a vertical short-run aggregate supply curve.
D. prevents the economy from producing its potential level of real GDP.
Ans: D. prevents the economy from producing its potential level of real GDP.
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A company can hire non-union workers, but a condition of their employment is that they must join the union within their first 90 days on the job. This is an example of a
A) right-to-work law. B) closed-shop. C) union shop. D) voluntary craft union.
In a progressive tax system
A) the marginal tax rate and the average tax rate are the same for every income level and the same as income increases. B) the marginal tax rate increase as income increases but the average tax rate does not change as income increases. C) the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate. D) the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate.