Which of the following models explains why high unemployment has persisted in some European countries for such long periods—periods too long to be the result of fixed money-wage contracts or backward-looking price expectations?
a. Insider outsider models
b. Efficiency wage models
c. Sticky price models
d. IS-LM models
A
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In 1995, the United States threatened to impose 100 percent tariffs on ________ from ________ if it didn't loosen its protectionist policies
A) light trucks; Germany B) brandies; France C) auto parts; Japan D) luxury cars; Japan
Define the following terms and explain their importance to the study of macroeconomics
a. central bank b. Federal Open Market Committee c. supply of money d. monetary policy
Tariffs and import quotas would benefit the following groups, except:
A. Consumers of the product B. Domestic producers of the product C. Workers in domestic firms producing the product D. The government of the importing country
A price ceiling imposed by the government:
A) can create situations of excess demand. B) is a tax that increases the market price of a good. C) involves pricing a commodity above the market price. D) helps in establishing equilibrium in case of shortage or surplus.