If workers push for wages that are beyond what productivity gains can justify ________
A) a temporary negative supply shock ensues driving up prices
B) a negative output gap ensues which will lead to higher unemployment if the Federal Reserve does not act
C) and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock, a price-wage spiral could ensue
D) all of the above
E) none of the above
D
You might also like to view...
Economic problems are made manageable by stripping away some of the unnecessary details
a. True b. False Indicate whether the statement is true or false
Vertical equity in income taxation refers to the notion that persons with different levels of income should be taxed differently.
Answer the following statement true (T) or false (F)
If workers have better information about their own ability to work than employers do, which of the following situations is present?
A. unemployment B. asymmetric information C. discrimination D. moral hazard
The three largest firms in an industry have market shares of 40 percent, 30 percent, and 2 percent. The remaining 47 firms in the industry each have a market share of 1 percent. The Herfindahl-Hirschman Index (HHI) for this industry is
A) 2,551. B) 5,184. C) 24,061. D) 10,000. E) 3,013.