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The graph below shows an economy in macroeconomic equilibrium. Suppose the federal government increases block grants to state



Whenever equilibrium real GDP is below the full-employment level of GDP, we have Select the correct answer below: O a natural


Which of the following is included in the payroll tax? Select all that apply: Medicare tax Social security tax Sales tax Pe


Suppose that Company A requires that its employees complete a time-consuming training sequence upon being hired. Providing th
Far left of the aggregate supply curve, the level of output in the economy is far below Select the two correct answers below.
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Answer #1

The effect of expansionary fiscal policy is:

AD will shift to the right. Price level will rise. Real GDP will also rise.

Price Level AS P P AD AD Y Real GDP E

--

Whenever equilibrium real GDP is below the full-employment level of GDP, we have

Correct answer:
cyclical unemployment
It causes the deviations from full-employment levels.
--
Which of the following is included in the "payroll tax"?

Correct answers:
Medicare Tax and Social Security Tax

These are the main deductions from the payrolls.
--
Which of the following models does the given scenario illustrate?

Correct answer:
Efficiency wage theory

Higher than market wages are paid to retain the employees.
--
Far left of the AS curve, the level of output in the economy is far below:

Correct answers:
Full-employment GDP and Potential GDP

The full employment level of GDP, also know as potential GDP, is the long run capacity of the economy to produce.

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