Statistical discrimination refers to:
A. the crowding of women or minorities into low-paying occupations.
B. significant differences in average levels of earnings by gender, race, and ethnicity, after
accounting for nondiscriminatory factors.
C. making individual hiring decisions on the basis of the characteristics of the group to which
a person belongs, rather than on his or her personal characteristics and productivity.
D. the 50-percent unexplained residual in studies that try to account for wage differences by
gender, race, and ethnic origin.
Answer: C
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A change in monetary policy has a larger effect on aggregate demand the
a. flatter the LM curve. b. the less elastic money demand. c. more elastic money demand. d. steeper the IS curve. e. the steeper the LM curve.