Gordon believes that the new Keynesian approach as opposed to other business cycle theories is preferred because
A) it explains information barriers and sticky wages.
B) it explains how workers are "fooled."
C) it explains wage and price stickiness assuming rational firms and workers.
D) it identifies the source of supply side shocks and slow SAS adjustment.
C
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Technological changes that increase the productivity of skilled workers relative to that of unskilled workers are referred to as:
A) skill-biased technological changes. B) labor-saving technological changes. C) unskilled-biased technological changes. D) labor-complementary technological changes.
A tariff is defined as:
a. a limit imposed on the quantity of imports. b. a tax collected before exporting a product. c. a discount given on an imported product. d. a tax imposed on an imported product.
Market power may result from all of the following except
A. Patents and copyrights. B. Efficiencies of large-scale production. C. Control of resources. D. Low barriers to entry.
Which of the following will definitely occur when there is a simultaneous increase in demand and an increase in supply?
A. an increase in equilibrium price B. an increase in equilibrium quantity C. a decrease in equilibrium price D. a decrease in equilibrium quantity