If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no
a. cyclical unemployment.
b. frictional unemployment.
c. natural rate of unemployment.
d. structural unemployment.
b
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Technological progress occurs when the economy gets more output
A) without any more capital or labor. B) by using more capital but not more workers. C) by using more capital per worker. D) by using more labor but not more capital.
The market for chewing gum is competitive with a current price of 50 cents per pack and a quantity of 100,000 packs per day. Which of the following events would lead to a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000?
a. an increase in the price of other kinds of candy b. an increase in the price of the ingredients used to make chewing gum c. an agreement by workers in the chewing gum industry to work for lower wages d. a decrease in the number of young people in the population e. a decrease in income
Price wars among firms
A. Tend to reduce short-run price stickiness because firms know they can lower their own prices without rival firms lowering their prices B. Occur when one firm lowers its price and rival firms react by lowering their prices C. Occur when firms use advertising to take customers away from rival firms D. Have no impact on the degree of short-run price stickiness