An increase in fixed costs will lower a firm's
a. total cost.
b. output.
c. prices.
d. profit.
d. profit.
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When a minimum wage is set above the equilibrium wage rate, ________
A) the supply of low-skilled workers decreases and the supply curve shifts rightward B) unemployment increases C) search activity decreases D) the supply of low-skilled workers increases and the supply curve shifts leftward
Assume that for the fourth quarter of 2012, nominal GDP was $245 billion, potential real GDP was $260 billion, and the GDP deflator was 112. According to Okun's law, the cyclical unemployment rate during the fourth quarter of 2012 was
A) 2.9%. B) 3.1%. C) 8.0%. D) 8.4%.
Real business cycle theorists agree with new Keynesian economists that
a. agents maximize utility. b. the labor market do not clear. c. AS shocks can play a big role in business cycles. d. Both a and c.
In a certain large city there are two firms that supply concrete. The concrete sold by the first firm is indistinguishable from the concrete sold by the second firm. Is the market competitive?