1)Which of the following does not explain why the U.S wage rates is higher than

Question

1)Which of the following does not explain why the U.S wage rates is higher than wage rates in developing countries?
A. Better education and training of the workers in the united states
B. Greater availability of capital in the united states
C. Use of newer technology in the united states
D. Higher labor productivity in the united states
E. Stricter environmental standards and stronger labor protection laws in developing nations.

2)A contractionary gap can be eliminated by all of the following, except:
A. A increase in short-run aggregate supply
B. An increase in aggregate demand
C. A decrease in taxes
D. An increase in money combined with banks loaning out their excess reserves
E. A decrease in government spending at the federal , state, and local levels

3)When self-correcting forces cure a contractionary gap,
A. Money wages and real wages both increase
B. Money wages remain constant while real wages fall
C. Money wages and real wages both decreased
D. Money wages fall while real wages increase
E. Real wages must increased regardless of what happens to money wages

4)If the economy were in a recession, which of the following polices would a person who favors an active approach to policy be most likely to support?
A. The economy should be left to cure itself without government intervention
B. The fed should sell U.S government securities in its open-market operations
C. The fed should raised the discount rate ‘
D. Government purchase should increase
E. The fed should raise the required reserve ration

Explanation / Answer

1. E 2. D 3. A 4. C Hope this helps

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