If the economy is operating in the intermediate range of the aggregate supply curve, then the greater the rate of growth of aggregate demand the:
A. Greater the resulting increase in the price level, the greater the rate of growth of output, and the greater the unemployment rate
B. Greater the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate
C. Less the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate
D. Greater the resulting increase in the price level, the greater the rate of growth of output, and the lower the unemployment rate
D. Greater the resulting increase in the price level, the greater the rate of growth of output, and the lower the unemployment rate
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The escape clause in U.S. trade law:
a. enables the United States to withdraw from NAFTA. b. permits the U.S. government to impose trade barriers if fairly traded imports are the cause of significant injury to a U.S. industry and its workers. c. permits the government to impose trade remedies against nations that unfairly subsidize their exports to the United States. d. enables immigrants to return to their home countries.
How does the elasticity of demand for labor affect the deadweight loss from an increase in the minimum wage? Why?
What will be an ideal response?