If the monthly unemployment rate increase mentioned in the Application wound up being a permanent and not temporary change, the best economic decision by the committee would most likely be to
A) decrease the money supply to stimulate the economy.
B) not change monetary policy.
C) decrease the money supply to slow the economy down.
D) increase the money supply to stimulate the economy.
D
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If Sam does not have a job and is NOT looking for work, he is considered
A) unemployed and not in the labor force. B) not in the labor force. C) unemployed. D) unemployed and in the labor force.
Credential inflation results from
(a) a combination of cost-push inflation and demand-pull inflation. (b) rigidities in the industrial sector. (c) the need to select from among qualified applicants in the modern sector. (d) all of the above.
For the efficient level of output to be produced, marginal
A. private cost must equal zero. B. benefit must equal marginal social cost. C. benefit must equal marginal private cost. D. social cost must be zero.
In the Keynesian model, the full-employment level of output is the amount of output produced when
A. the real wage exceeds the nominal wage. B. labor is paid an efficiency wage, and the real wage equals the marginal product of labor. C. the quantity of labor demanded equals the quantity of labor supplied. D. the market wage exceeds the efficiency wage.