In the long run the unemployment rate equals
a. zero.
b. the cyclical rate of unemployment.
c. the natural rate of unemployment.
d. the sum of the cyclical and natural rate of unemployment.
c
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Refer to the payoff matrix above. Which of the following is true for Campers R Us?
A) They have two dominated strategies.
B) They have zero dominated strategies.
C) They have three dominated strategies.
D) They have one dominated strategy.
Prices are useful in coordinating society’s economic planning because
A. they convey information about which goods are scarce and which are plentiful. B. economies based on price systems are more flexible than centrally planned economies. C. economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society’s output. D. All of the responses are correct.
What is the relationship between price and marginal revenue for a competitive firm?
The logic behind the tradeoff between inflation and unemployment is that high aggregate demand puts upward pressure on wages and prices while raising output.
Indicate whether the statement is true or false.