An argument in support of hysteresis is
A) companies may be reluctant to hire workers until AD increases.
B) prices are sticky in the short run.
C) the skills of unemployed workers may deteriorate making it more difficult to find a job.
D) overlapping wage contracts.
C
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The price of cotton clothing falls. As a result,
A) the quantity demanded of cotton clothing increases. B) the demand for cotton clothing increases. C) the quantity demanded of cotton clothing decreases. D) the demand for cotton clothing decreases. E) both the demand for cotton clothing increases and the quantity demanded of cotton clothing increases.
Bank A has total deposits of $3 million and total reserves of $1 million. The required reserve ratio is 20 percent. The bank has excess reserves of
A) $20,000 B) $200,000 C) $400,000 D) $40,000 E) There is not enough information provided to answer this question
A moderate rate of inflation is considered helpful if it: a. makes wages in labor markets rigid
b. stabilizes the interest rate. c. decreases the rate of growth in investments. d. makes wages in labor markets flexible.
Which of the following is NOT a characteristic of a monopoly?
A. A monopolist faces a downward-sloping demand curve. B. There are no close substitutes for a monopolist's product. C. After the first unit, the monopolist's marginal revenue is always less than its price. D. A monopolist is a price taker.