QUESTION 22 Economists suggest several theories explaining why wages have been "sticky" since World War Two. Here "sticky" means O a. that wages have not fallen during recessions, as both theory and pre-WWII experience have demonstrated. O b. none of the above. O c. that there have been an unusual number of labor strikes since 1945. O d. that wages have risen sharply during post-WWII recessions. QUESTION 23 Equilibrium GDP O a. can be all of the above scenarios. O b. can occur at a level belows full employment GDP. O c. can occur at a level beyond potential GDP, accompanied by inflation. O d. can occur at potential GDP with stable prices. QUESTION 24 We have defined the term capital to refer to O a. government purchases, since they originate in the capital city of the US. O b. the money businesses invest in the New York Stock Exchange. O c. equipment, tools, machinery, and plants or other buildings used in the productive process. O d. money for start-up businesses. QUESTION 25 The fiscal policy planner's job O a. can be carried out with a great deal of precision. O b. is made easier because full employment GDP can be accurately estimated. O c. is difficult because some data is open to interpretation, we can only estimate the MPC and the multiplier, and so forth. O d. is a piece of cake. QUESTION 26 Government purchases O a. have the same multiplier effect as increases in business investment spending. O b. are authorized by the Federal Reserve and are a component of Fiscal Policy. O c. have no effect on the level of GDP and national income. O d. refer to government payments of Social Security, food assistance, and unemployment insurance