Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A. Resources are becoming unemployed.
B. Land that was once used to graze sheep is now being used to grow wheat.
C. The economy has acquired new resources that are well suited for producing bread.
D. The technology for growing wheat has improved.
Answer: A
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Frictional unemployment best defined as
A. Deviation of unemployment from its natural rate B. Unemployment of people who do not want to work. C. Chronic unemployment due to wages not balancing supply and demand D. Unemployment due to individuals search for new job.
Customer discrimination results in
A. a segregated workforce. B. lower wages for the discriminated against worker group. C. a lower output price regardless of who the firm hires. D. lower firm profits. E. All of these are results of customer discrimination.
If the Fed wants to increase the federal funds rate through open market operations, it ________
A) decreases tax rates B) buys bonds C) sells bonds D) increases tax rates
________ flexible wages and prices imply that the short-run aggregate supply curve is ________
A) More; flatter B) Less; steeper C) less; vertical D) More; steeper