An unanticipated increase in the level of prices in the goods and services market, which results in a temporary reduction in real wage rates, will
a. decrease the natural rate of unemployment.
b. increase the natural rate of unemployment.
c. result in an actual rate of unemployment that is less than the natural rate of unemployment.
d. result in an actual rate of unemployment that is greater than the natural rate of unemployment.
C
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Why is it important to understand fixed exchange rates in the modern global economy?
What will be an ideal response?
In a barter system individuals
A) find it impossible to specialize. B) must be entirely self-sufficient. C) find it difficult to specialize, but may be able to do so. D) will almost invariably specialize.
The concept of relative poverty
A. leads to the concept of inequality. B. replaces the need for concepts of absolute poverty. C. is measured relative to the poverty line. D. is only relevant in low income countries.
The profits of the leader in a Stackelberg duopoly:
A. equal those of the follower. B. are greater than those of the follower. C. are greater than those of a Sweezy oligopolist. D. are less than those of the follower.