How are the wage rate and employment determined in a competitive labor market?
What will be an ideal response?
In a competitive labor market, the wage rate and employment are determined at the intersection of the demand for labor curve and the supply of labor curve.
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The function of money that allows individuals a method to compare the relative value of goods and services is
A) liquidity. B) medium of exchange. C) store of value. D) unit of accounting.
An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system
a. currency speculation will be reduced. b. balance of payments surpluses and deficits can be dealt with using fiscal policy, not monetary policy. c. inflation will be minimized by the "discipline of the balance of payments." d. the price of imported goods will be kept relatively low. e. none of the above.