Efficiency wages, above equilibrium minimum wage rates, and higher union wages are likely to
A) reduce the equilibrium real wage rate.
B) decrease the natural unemployment rate.
C) increase the equilibrium real wage rate.
D) increase cyclical unemployment.
E) increase the natural unemployment rate.
E
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Keynesians and monetarists share the belief that
a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial.
A solution to the budget-gaming problem is
a. Introduce milestones or kinks in the compensation scheme b. Use a target based pay function with each target scoring greater return c. Do not base compensation on meeting a particular budget goal d. All of the above