The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function
B) an increase in the rental price of capital along with a healthy stock market response
C) a decline in real wages due to a downward shift of the MPL curve
D) an increase in the rental price of capital due to an upward shift of the production function
E) none of the above
C
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Which of the following is a "free" good?
A) Elderly health care, which is covered by Medicare B) Health care for the poor, which is covered by Medicaid C) Higher education in Georgia, which is paid for by lottery revenue D) All of the above. E) None of the above.
China has used a fixed yuan exchange rate and a crawling peg exchange rate. In both cases, China pegs its currency to the
A) U.S. dollar. B) Japanese yen. C) euro. D) Mexican peso.