High income countries with larger governments as a share of GDP have generally
a. grown less rapidly than their counterparts with smaller governments.
b. experienced less deadweight losses resulting from taxes and/or government borrowing.
c. seen the government decrease in size as real GDP rises.
d. been able to be more economically efficient.
A
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Collective bargaining by unions can result in a union wage rate that is ________ the equilibrium real wage rate and creates a ________ of labor
A) below; shortage B) above; shortage C) below; surplus D) above; surplus E) equal to; surplus
When inflation is very low, how do workers and firms adjust their expectations of inflation?
A) They tend to ignore inflation. B) They are more aggressive in asking for wage and price increases. C) They rapidly adjust their expectations of inflation downward. D) They rapidly adjust their expectations of inflation upward.