The increase in the demand for widgets, shown in the figure above, is the result of an increase in people's incomes from $28,500 per year to $31,500 per year. Therefore, the income elasticity of demand for widgets is

Which of the following statements is correct? a. If unions successfully bargain for higher wages for their union members, employment among union members will increase. b. Wages are higher in nonunion jobs than in union jobs of comparable skill

c. The efficiency wage model asserts that higher wages will lead to higher productivity. d. The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor.

Cost-push inflation is inflation caused by

a. a decrease in aggregate demand b. a decrease in aggregate demand and an increase in aggregate supply c. a shortage of all goods d. an increase in aggregate supply e. a decrease in aggregate supply