answerstopracticequestions4spring2004 - ECONOMICS 102...

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E CONOMICS 102 S PRING 2004 S OLUTIONS TO PRACTICE QUESTIONS #4 B INARY Q UESTIONS 1) b. 2) b. The price will decrease until the Quantity Demanded equals the Quantity Supplied. 3) a. It follows from the fact that: GDP per capita = (National GDP / Population) 4) a. 5) a. This is because the growth in employment has been caused by a shift of the demand curve for labor to the right. 6) b. M ULTIPLE C HOICES 1) c. 2) c. A country could exhibit a national debt even if it had a budget surplus in the previous year. 3) a. P ROBLEMS 1) The Labor market in the country of Fantasyland can be represented by the following picture: Then: a) At the Real hourly wage of $15, there is an excess demand of 200 workers. b) According to the Classical view, the Real hourly wage is going to increase in order to guarantee the full employment in the economy and it will eventually settle at the value of $20. The number of workers employed at this wage is 200. c) The Full Employment output is 40M units.
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answerstopracticequestions4spring2004 - ECONOMICS 102...

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