In the above figure, a minimum wage will not change the unemployment rate if it is set at
A) $6.00.
B) $9.00.
C) $12.00.
D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate.
E) None of the above because the minimum wage always affects the unemployment rate.
A
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Which of the following is a similarity between a tax and a subsidy in a competitive market without any externalities? a. Both result in deadweight loss
b. Both result in a decrease in demand. c. Both result in an increase in price. d. Both result in an increase in government revenue.
Which are contractionary fiscal policies?
a. Increased taxation and decreased government spending b. Increased taxation and increased government spending c. No change in taxation and increased government spending d. Decreased taxation and no change in government spending