The cost of inflation reduction is a large, permanent increase in unemployment
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above illustrates the current market for workers in Lima, Peru
a) Without any government intervention, what is the equilibrium wage rate and amount of employment? b) If the city government imposes a minimum wage of $3 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not? c) If the city government imposes a minimum wage of $6 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not?
How much cloth production would Calvin lose in a day in order to produce 1-1/2 pounds of food?
a. 1 yard
b. 2 yards
c. 3 yards
d. 4 yards
When a monopolist switches from charging a single price to practicing perfect price discrimination, it reduces
a. total surplus.
b. the quantity produced.
c. the firm's profit.
d. consumer surplus.
Assume that investment does not depend on the interest rate. A reduction in government spending will cause which of the following for this economy?
A) no change in the interest rate B) no change in output C) no change in investment D) an increase in investment E) none of the above