In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________

If firms sell what they expected to sell, which of the following will be true?

A) Aggregate expenditure will be greater than GDP. B) Aggregate expenditure will be less than GDP. C) There is no unplanned change in inventories. D) Inventories will rise, and GDP and employment will fall.

Usually, increased government spending for war increases inflationary pressures. The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence, during World War II, of

a. full employment. b. government ownership of factories. c. full production. d. wage and price controls. e. high levels of patriotism.