The new Keynesians believe that the economy is not always in equilibrium because:
a. of the existence of voluntary unemployment.
b. the Federal Reserve policy is too restrictive.
c. government intervention destabilizes the economy.
d. of the existence of wage and price rigidities.
e. the rate of inflation is too high.
d
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A country has 6,000 total efficiency units of labor. If the average efficiency of each worker in the economy doubles, the country will have ________ efficiency units of labor, everything else remaining unchanged
A) 48,500 B) 36,000 C) 300 D) 12,000
A speculative attack involves massive sales of a currency or purchases of a currency that cause a sharp change in the exchange rate under a exchange rate system
A) weak; strong; fixed B) strong; weak; fixed C) weak; strong; floating D) strong; weak; floating
Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.
A perfectly inelastic supply curve is
A) an upward sloping straight line that intersects the origin. B) horizontal. C) vertical. D) downward sloping.