Which of the following is most likely to result if the Congress passes the living wage law?

Which of the following offers an example of frictional unemployment?

a. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-tern decline in horse-and-buggy transportation. b. The rise in unemployment among farm workers after harvest. c. Unemployment resulting from the business cycle. d. None of the above are correct.

If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will

a. decrease. b. increase. c. remain constant. d. increase more slowly than real GDP.