Cyclical unemployment arises when:
a. business activity in the macroeconomy declines
b. the business cycle enters an expansionary phase.
c. labor unions strike for higher wages.
d. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.
a
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Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii and iii B) i only C) ii only D) i and ii E) iii only
The standard measure of the money stock, M1, refers to
a. checking account balances, travelers' checks, and cash in the hands of the public b. cash in the hands of the public, demand deposits, and small time deposits c. cash in the hands of the public, savings-type account balances, and travelers' checks d. savings-type account balances, small time deposits, and checking account deposits e. the sum of the cash in the hands of the public
The cost to firms of changing prices
A) is small even when there is rapid inflation. B) is called a menu cost. C) does not exist if inflation is perfectly anticipated. D) all of the above
Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. Based on this information, we can say that
A. profits will be increased by hiring additional workers. B. profits will be increased by hiring fewer workers. C. the restaurant is maximizing profits. D. marginal revenue product must exceed average revenue product.