By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statistics isolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time

Which of the following is an example of a compensating wage differential?

A) Workers in a dynamite mine receive higher wages than if they worked in other jobs that require the same level of skills. B) Nurse anesthetists are paid less than anesthesiologists (who have medical degrees). C) In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs. D) Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.

The Keynesian region of the aggregate supply curve represents an economy with:

a. high unemployment and low inflation. b. low unemployment and low inflation. c. low unemployment and high inflation. d. high unemployment and high inflation. e. excess capacity but no unemployment or inflation.