Econ002_quiz4

Econ002_quiz4 - Econ 002 Quiz 4 Name SID Section 1 If the...

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Econ 002 Quiz 4 Name: SID: Section: 1. If the labor supply and demand curves cross at a wage of $20, a. a wage rate of $10 per hour would lead to an excess demand for labor b. a wage rate of $10 per hour would lead to an excess supply of labor c. that wage causes a high rate of cyclical unemployment d. employees are overpaid e. a wage rate of $10 per hour would mean there is a significant amount of structural unemployment 2. According to the classical model, if the government lowers its budget deficit, which of the following will occur? a. The interest rate will rise, and consumption, investment and output will all decrease. b. The interest rate will fall, consumption and investment will increase, but output will not change. c. The interest rate will rise, and consumption, investment and output will all increase. d. The interest rate will fall, and consumption, investment and output will all increase. e. The interest rate will fall, consumption will not change, but investment and output will both increase. 3. The aggregate production function shows a. the total output the economy can produce with different quantities of labor and technology, holding land and capital constant
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This note was uploaded on 05/25/2010 for the course ECON 2 taught by Professor Mahalingam during the Winter '10 term at UC Riverside.

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Econ002_quiz4 - Econ 002 Quiz 4 Name SID Section 1 If the...

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