For this question, assume that the economy is initially operating at the natural level of output. An increase in unemployment benefits will cause
A) an increase in the real wage in the medium run.
B) a reduction in the real wage in the medium run.
C) no change in the real wage in the medium run.
D) ambiguous effects on the real wage in the medium run.
C
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According to the Bureau of Labor Statistics, a person who does not have a job and has not been actively looking for a job in the past four weeks is considered
A) unemployed. B) employed. C) not in the labor force. D) underemployed.
If expectations are formed rationally and wages are flexible, the aggregate supply curve is
A) upward sloping. B) horizontal. C) vertical. D) relatively flat.
Which central bank has its exchange rate as a focus of its monetary policy?
A) Bank of Canada B) Bank of England C) European Central Bank D) Federal Reserve
A firm that holds a monopoly in both goods stands to gain from a tie-in sale
A) True. B) False. C) True, which is why anti-trust laws exist. D) False, there are no dual monopolies.