Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will this affect the market for automobiles?
The higher wages will shift the supply of automobiles to the left. As a result, the price of automobiles will rise, and the quantity of automobiles sold will decline.
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Which of the following statements is true?
A) Exponential growth refers to growth by the same amount in every time period. B) To depict variables that have exponential growth, it is more convenient to use an axis with a proportional scale. C) Linear growth refers to growth by the same proportion in every time period. D) To depict variables that have exponential growth, it is more convenient to use an axis with a linear scale. Consider two countries: country A and country B. At the beginning of year 2010, the GDP per capita in both countries is $2,400. The annual growth rate of output in country A is 3%, while the annual growth rate of output in country B is 5%.
Holding the actual unemployment rate below the natural unemployment rate eventually causes the natural rate to fall toward the actual, according to the ________ hypothesis, implying that an aggressive stimulative demand policy causes a ________
acceleration of inflation. A) hysteresis, temporary B) hysteresis, permanent C) structuralist, temporary D) structuralist, permanent