At point S, the economy is operating at approximately _______ unemployment?
2-4%
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If unexpected news raised people's expectations of a corporation's future dividends and price, then before the price changes this corporation's stock would be
a. overvalued, so its price would rise. b. overvalued, so its price would fall. c. undervalued, so its price would rise. d. undervalued, so its price would fall.
Briefly explain the effect of pursuing expansionary policy during a time of full employment.
What will be an ideal response?
Suppose the current level of output is 5000 and the elasticity of output with respect to labor is 0.7. A 10% increase in labor would increase the current level of output to
A. 5035. B. 5350. C. 5070. D. 5700.
Refer to the given diagram and assumptions. If migration is costless and unimpeded:
Assumptions: (1) The demand for labor in Alphania and Betania are as shown by D A and D B ,respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries.
A. migration will cause the average level of wages to fall in Alphania.
B. no migration will occur.
C. fg workers will move from Betania to Alphania.
D. GF workers will move from Alphania to Betania.