Wage differentials exist in the long run because
a. labor markets are perfectly competitive
b. all jobs are equally attractive to all workers
c. the prices of goods vary by market
d. there are too many workers in the labor force
e. not all workers are equally qualified to perform every job
E
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In the long run, we typically assume that ________
A) capital, labor, and technology are independent of the level of inflation B) the natural rate of unemployment is independent of the level of inflation C) aggregate supply is fixed and independent of the level of inflation D) all of the above E) none of the above
A temporary decrease in taxes leads to
A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.