Refer to the diagram above. The phases of the business cycle from points A to D are, respectively:
Expansion, recession, trough, peak
Trough, recovery, expansion, peak
Peak, recession, trough, expansion
Peak, recession, expansion, trough
Peak, recession, trough, expansion
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Consider a firm that uses labor and capital to produce output x using a homothetic production technology that has increasing returns to scale when output lies between 0 and xA, constant returns to scale when output lies between xA, and xB, and decreasing returns to scale when output exceeds xB (where 0
What will be an ideal response?
The monopsonistic exploitation of labor refers to
A) the reduction in total output from monopoly in the product market. B) the union wage differential. C) workers being paid a wage less than their marginal revenue product. D) the reduction in employment resulting from union wage setting.
If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward
a. True b. False Indicate whether the statement is true or false
If ______ then AVC is falling.
a. MC > AVC b. MC < AVC c. MC > AFC d. MC < AFC