What are the four phases of the classical business cycle and how is employment typically affected during each phase?
The four phases of the business cycle are:
expansion--employment is typically increasing/unemployment falling
peak--output is the highest during the cycle, employment typically increases to this point (before it begins to fall)
contraction--employment falls and unemployment rises (as output falls)
trough--output reaches its lowest level during the cycle, employment is typically falling until the trough is reached (after which it begins to rise)
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La Dila and Swiss Pro are the only two firms in an industry. The firms initially charge equal prices for their products, which are perfect substitutes. What happens if La Dila decides to lower its price slightly?
A) La Dila will lose all its market share. B) Swiss Pro will gain market share. C) La Dila will face the entire market demand. D) Swiss Pro will earn positive economic profits.
Why is it true that under monopolistic competition the price is above marginal revenue while under pure competition price is equal to marginal revenue?
What will be an ideal response?
Describe the basic issues involved in setting up a system of national accounts that includes the value of environmental capital and its loss
What will be an ideal response?
The volume of U.S. debt in absolute terms was the highest during the period:
a. 1995–2000. b. 1945–1950. c. 2010–2014. d. 1975–1980.