In the short run unemployment may fall below the natural rate of unemployment if:

a) Nominal wages have risen less than inflation
b) Nominal wages have risen at the same rate as inflation
c) Nominal wages have risen more than inflation
d) Nominal wages have risen less than unemployment


Answer: a) Nominal wages have risen less than inflation

Economics

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Refer to the production possibilities frontier in the figure above. Which of the following movements requires the largest opportunity cost, in terms of good Y forgone, per extra unit of good X?

A) from point a to point b B) from point b to point c C) from point c to point d D) from point d to point e

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An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country

A) importing; improve; benefit B) exporting; improve; benefit C) importing; suffer; harm D) exporting; improve; harm E) importing; improve; harm

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Describe the steady state in the Solow growth model

What will be an ideal response?

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When four Infineon Technologies executives participated in an international conspiracy to fix prices for computer memory chips, they were acting with other firms as:

A. a cartel. B. if they faced kinked demand curve. C. an industry with monopolistic competition. D. if they were in a contestable market.

Economics