Econ002_Quiz3

Econ002_Quiz3 - Name: Section: SID Econ 002 Quiz 3 1. The...

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Name: SID Section: Econ 002 Quiz 3 1. The market clearing assumption is a. a central assumption of the short-run macro model b. the idea that prices in every market will adjust until quantity supplied and quantity demanded are equal c. the idea that excess supply always leads to an increase in demand d. the idea that markets only work when they are in equilibrium e. believed by most economists today to be an unreasonable assumption 2. The labor supply curve a. slopes upward to illustrate that more people will want to work as the real wage increases b. slopes upward to illustrate that changes in the real wage are directly proportional to changes in the nominal wage c. may slope either upward or downward, depending upon the real wage d. slopes downward to illustrate that a decrease in the real wage decreases the number of individuals willing to work e. slopes downward to illustrate that the availability of workers is directly proportional to the real wage 3. Refer to Figure 7-1 . If the real hourly wage rate was $6, what would be the effect?
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Econ002_Quiz3 - Name: Section: SID Econ 002 Quiz 3 1. The...

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