If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit.
B. firms will generally gain by earning higher profits.
C. most likely the government won't study how minimum wage legislation may affect employment.
D. minimum wages may still be binding for many employees.
Answer: A
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In the short run, an increase in net exports causes
A. an increase in real GDP and the price level. B. an increase in real GDP and a decrease in the price level. C. adecrease in real GDP and an increase in the price level. D. a decrease in real GDP and the price level.
In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War