If the unemployment rate is 5 percent (full employment), the United States economy is operating

To be effective in raising people's wages, a minimum wage must be set

A) above the equilibrium wage rate. B) below the equilibrium wage rate. C) equal to the equilibrium wage rate. D) below $7. E) either above or below the equilibrium wage depending on whether the supply curve of labor shifts rightward or leftward in response to the minimum wage.

When tax revenue ________ outlays is positive, then the government has a budget ________

A) minus; surplus B) divided by; surplus C) minus; deficit D) plus; deficit E) plus; surplus