Suppose in the imaginary country of Xurbia, a remarkable new tool which improves the ability for job seekers to find out about jobs at different companies and make contact with those companies with relative ease is introduced and widely adopted by employers and job seekers. What do you expect will happen to the natural rate of unemployment in Xurbia?
Ans: It will decrease.
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If the actual rate of inflation exceeds the expected rate of inflation, the actual real wage is greater than the expected real wage and unemployment falls
Indicate whether the statement is true or false
Social Security is based on the concept of
a. private insurance supported by public money b. private insurance supported by private money c. specific retirement packages for each industry d. accumulation of your own funds that will be returned to you, with interest, upon retirement e. pay-as-you go
Suppose an increase in supply lowers the price from $10 to $8 and increases and increases the quantity demanded from 100 units to 130 units. Using the midpoint method, the elasticity of demand equals what
A) 1.17. B) 0.85. C) 0.26. D) 1.56. E) None of the above answers is correct.
The Ricardian model (with constant opportunity costs) predicts that a nation will ______________ in the production of the good it exports.
a. have a comparative disadvantage b. develop shortages c. lower the cost of production d. specialize completely