In the long run what primarily determines the natural rate of unemployment? In the long run what primarily determines the inflation rate? How does this relate to the classical dichotomy?
In the long run the natural rate of unemployment is primarily determined by labor market factors including government policy concerning minimum wages and unemployment benefits. In the long run inflation is primarily determined by money supply growth. These determinants are consistent with the classical dichotomy which states that real and nominal variables are determined independently.
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If labor productivity growth slows down in a country, this will
A) slow down the increase in real GDP per capita. B) accelerate the increase in nominal GDP. C) slow down the increase in nominal GDP. D) accelerate the increase in real GDP per capita.
Other things the same, which of the following could explain a rise in Sweden's net capital outflow?
a. interest rates on Swedish bonds rise b. the probability of default on Swedish bonds rises c. Sweden enacts a law reducing taxes on income earned by foreign-owned businesses operating in Sweden d. None of the above are correct.
When El Torito Restaurant is deciding to open a new restaurant location in another town, it is making a ________ decision.
A. labor B. long-run C. fixed-input D. short-run
Refer to the table below. Marginal product is zero when the total product is:
The question is based on the following table that provides information on the production of a product that requires one variable input.
A. 0
B. 5
C. 56
D. 58