One determinant of the long-run average unemployment rate is the
a. market power of unions, while the inflation rate depends primarily upon government spending.
b. minimum wage, while the inflation rate depends primarily upon the money supply growth rate.
c. rate of growth of the money supply, while the inflation rate depends primarily upon the market power of unions.
d. existence of efficiency wages, while the inflation rate depends primarily upon the extent to which firms are competitive.
b
You might also like to view...
Central banks can use _______________________ to reduce the quantity of money and loans in an economy.
a. closed market operations b. public market operations c. open market operations d. private market operations
A good would have a high price elasticity of demand if: a. there are many close substitutes for the good available in the market. b. the good is used every day by almost every household in the economy. c. the good has a low cost in proportion to most consumers' budgets
d. consumers cannot delay the purchase of this good.
If the price of a good increases by 5% and the quantity demanded decreases by 10%, then at that price, the good is
A. elastic. B. perfectly inelastic. C. perfectly elastic. D. inelastic.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.