If the price level in an economy turns out to be higher than that expected by workers and firms, _____.
Fill in the blank(s) with the appropriate word(s).
firms increase production.
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According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 5 percent, real GDP is
A) $10.1 trillion. B) $9.9 trillion. C) $9.8 trillion. D) $10.2 trillion. E) $8 trillion.
The above figure shows three different supply-and-demand graphs. Which graph best represents the market for workers at your nearest fast-food restaurant?
A) Graph A B) Graph B C) Graph C D) None of the above.
Firms in monopolistically competitive markets can differentiate their products on the basis of: a. brand identity
b. quality. c. convenience. d. all of the above.
Statistical discrimination:
A. is always a legal solution to information asymmetry. B. is an irrational response to information asymmetry. C. can limit the opportunities of individuals just because they happen to belong to a certain group of people. D. All of these statements are true.