A minimum wage that is below the equilibrium wage rate does not raise unemployment

Refer to Figure 13-13. What is the output price?

A) P4 B) P3 C) P2 D) P1

With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would

have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater