Which of the following statements is (are) correct? In the insider/outsider model there is
a. unemployment due to the real wage being set above the market clearing level.
b. cyclical unemployment in response to changes in aggregate demand.
c. structural unemployment in response to hysteresis.
d. Both a and b
e. all of the above
E
You might also like to view...
When the price of one pen is $1, 50 notebooks are demanded. When the price per pen increases to $5, the number of notebooks demanded decreases to 30. What is the cross-price elasticity of demand between the two goods using the arc method?
A) 0.1 B) -0.375 C) 3 D) -3
The figure above shows the demand and marginal revenue curves facing Sue's Surfboards, the sole renter of surfboards on Big Wave Island. If Sue is renting 25 surfboards an hour so that the marginal revenue is negative, then Sue's Surfboards
A) can increase its profit by increasing the number of rentals. B) must face an inelastic demand for surfboard rentals. C) must face a unit elastic demand for surfboard rentals. D) must face an elastic demand for surfboard rentals.
What exists when the consequences of the actions of one person spill over to another person?
a. externality b. signal c. free ride d. moral hazard
Social Security payments are examples of:
A. nondurable goods. B. durable goods. C. services. D. transfer payments.