According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________
A) slowly; do little
B) rapidly; do little
C) rapidly; fight recessions
D) slowly; fight recessions
B
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Joe has been unable to find a job because he lacks the necessary computer skills. Joe is
A) cyclically unemployed. B) skill-set unemployed. C) frictionally unemployed. D) structurally unemployed. E) educationally unemployed.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy reacting to an inflationary gap through an increase in wage levels?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
The economic basis for trade is based on absolute advantage.
Answer the following statement true (T) or false (F)
Because of diminishing marginal productivity
A) the labor supply curve is not vertical. B) nominal wages are sticky in a downward direction. C) the labor demand curve is negatively sloped. D) households save only a small share of their income.