In the diagram above, what will happen if the government sets the minimum wage at Point B?

AThere will be a shortage of workers.

BThere will be a surplus of workers.

CThe minimum wage will rise to meet equilibrium.

DThe minimum wage will fall to meet equilibrium.

Lowering the discount rate can promote full employment because

Aemployees are more likely to apply for multiple jobs

Bemployees are able to get better offers for hourly wages

Ccompanies are more likely to expand and hire more workers

d)companies are less likely to sign up employees for unemployment insurance





How do member banks of the Federal Reserve differ from other depository institutions?

AThey participate in the Federal Open Market Committee.

BThey receive services from the regional Federal Reserve Bank.

CThey are stockholders in their regional Federal Reserve Bank.

DThey are subject to the banking regulations issued by the Federal Reserve.

Which of the following circumstances usually comes before a period of economic contraction?

ADecreasing inflation

BHigh unemployment

CLow GDP

DPeak production

Use this image to answer the following question. When the economy is operating at point C, the U.S. Congress is most likely to follow

Aexpansionary fiscal policy

Bcontractionary fiscal policy

Cexpansionary monetary policy

During a cold winter, there is a natural-gas shortage. The government sets a price ceiling on natural gas so that people can continue to afford heating. If the price ceiling remains in effect, what will happen?

AQuantity demanded will exceed the quantity supplied.

BQuantity demanded will equal the quantity supplied.

CQuantity demanded and supplied will reach price equilibrium.

DQuantity demanded will be lower than the quantity supplied.

EWhich of these could result from decreased federal spending?

f) Advances in the space program


g) Fewer social programs

h) Increased national debt


i) More government regulation