Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000. If the minimum wage is set at $7.50 per hour, then the
A) quantity of apricot pickers employed increases.
B) quantity of apricot pickers employed decreases.
C) quantity of apricot pickers employed does not change.
D) wage rate for apricot pickers decreases.
E) quantity of apricot pickers demanded does not change, and the quantity of apricot pickers supplied does not change.
B
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Which of the following happened during the Great Depression?
a. Unemployment and prices increased while output decreased. b. Unemployment increased while output and prices decreased. c. Unemployment and prices decreased while output increased. d. Unemployment and output decreased while prices increased. e. Unemployment and output increased while prices decreased.
If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent. b. It will make fiscal policy less potent. c. The potency of fiscal policy will be unaffected. d. The potency of expansionary fiscal policy will be reduced, but that of restrictive fiscal policy will be enhanced.