When there is an inflationary gap

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Reference no: EM131392538

1. Which of the following is not true when there is an inflationary gap?

a. ?Real output exceeds the natural level of real output.

b. ?Employment exceeds full employment.

c. ?Unemployment exceeds the natural rate of unemployment.

d. ?All of the above are not true when there is an inflationary gap.

2. If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor:

a. ?the demand for unskilled labor will decrease.

b. ?the quantity of unskilled labor supplied will equal the quantity of unskilled labor demanded.

c. ?the quantity of unskilled labor demanded will exceed the quantity of unskilled labor supplied.

d. ?the quantity of unskilled labor supplied will exceed the quantity of unskilled labor demanded.

Reference no: EM131392538

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