Suppose the U.S. government imposes a maximum price of $5 per gallon of gasoline, and the current equilibrium price is $3.50 per gallon. This policy represents a:

Suppose that the U.S. government required firms to pay a living wage to workers in their subsidiaries or contracting firms in developing countries. As a consequence of this requirement, wages would likely _______ to the living wage and employment would likely _________.

a. rise; increase b. fall; increase c. rise; decrease d. fall; decrease

Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and net nonreserve-related borrowing/lending in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. Real GDP remains the same and net nonreserve-related borrowing/lending balance becomes more positive (or less negative). b. Real GDP rises and net nonreserve-related borrowing/lending balance becomes more negative (or less positive). c. Real GDP falls and net nonreserve-related borrowing/lending balance becomes more positive (or less negative). d. Real GDP and net nonreserve-related borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.