When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of

a. structural unemployment created by efficiency wages. b. structural unemployment created by sectoral shifts. c. frictional unemployment created by efficiency wages. d. frictional unemployment created by sectoral shifts.

Why do labor economists often find it difficult to estimate the ceteris paribus return to education, in terms of wage, using non-experimental data?

A. Education level in non-experimental data is probably dependent on other omitted factors that also affect wage. B. In a non-experimental setting,education level is often difficult to measure.  C. Wage is often reported unreliably and inaccurately. D. Experience, another factor that also affects wage, is generally difficult to measure.