The system of grants from one level of government to another is an example of fiscal federalism.

By threatening to lockout the workers, the firm has

a. Eliminated half of the strategies b. Forced the union to choose the best response in the firm's best interest c. Made it in the union's best interest to not strike d. All of the above

When the economy is in a recessionary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________

A) shortage; rise; AD; rightward B) shortage; fall; SRAS; leftward C) surplus; rise; AD; rightward D) shortage; fall; SRAS; rightward E) surplus; fall; SRAS; rightward