Government unemployment payments can increase the unemployment rate by
What will be an ideal response?
allowing the unemployed to be more picky about taking a new job.
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Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right. B. shift to the left. C. become less elastic. D. remain the same since entering firms serve other customers in the market.
The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the ________.
A. discount rate B. prime rate C. term auction rate D. real interest rate
Which of the following is considered a negative supply shock?
A) an unexpected decrease in the refining capacity for oil B) an improvement in technology C) increasing immigration in the economy causes the labor supply to rise D) an increase in unemployment
If a professional sports athlete signs a new contract which defers compensation until years after she is retired, she is signaling
A) that she does not plan to shirk in the future, regardless of whether she did so in the past. B) that she did shirk and she will do so in the future. C) that she did shirk but won't do so in the future. D) that she didn't shirk and she won't do so in the future.