Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the
A) demand curve for unskilled labor is vertical.
B) demand curve for unskilled labor is downward-sloping.
C) supply curve for unskilled labor is downward-sloping.
D) supply curve for unskilled labor is horizontal.
E) none of the above.
A
Economics
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed. B) quantity of capital is fixed. C) full-employment level of employment is fixed. D) price level is fixed.
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Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being
a. True b. False Indicate whether the statement is true or false
Economics