Select the positive statement that completes the sentence: If wages rise more rapidly than productivity:
A. profits will fall.
B. workers will earn 3/4 of GDP.
C. the rate of inflation increases.
D. policymakers should impose a wage ceiling.
Answer: D
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In Year 1 suppose the economy is at potential GDP and that the federal budget deficit equals $100 billion. In Year 2 the federal budget deficit rises to $150 billion, but the cyclically adjusted budget deficit falls to $75 billion
How can the actual budget deficit rise and the cyclically adjusted budget deficit fall?
Most modern countries have prohibitions on the trading of human organs in the marketplace
What impact do you believe such laws have had on the availability of organs for patients that need them? Furthermore, which people are most likely to be able to obtain the organs that they require and why? Explain the ethical dilemma that is at work that makes the strict application of basic economic principles difficult to put into practice in cases like this.