The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Unemployment will equal

A) 0 hours.
B) 10 million hours per year.
C) 20 million hours per year.
D) 30 million hours per year.

D

Economics

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In the classical model

A) a decrease in aggregate demand will lead to a decrease in the price level and a decrease in real GDP. B) changes in aggregate supply leave real GDP unchanged. C) a decrease in aggregate demand will lead to an increase in the price level and a decrease in real GDP. D) changes in aggregate demand affect only the price level, not real GDP.

Economics

Which of the following is NOT an example of common property?

A) a trampoline B) air C) gravity D) sunshine

Economics