What is the relationship between unemployment and the price level in the short run?
What will be an ideal response?
In the short run, there is a trade-off between the unemployment rate and the inflation rate. As the economy moves closer to full employment, there will be upward pressure on both wages and prices, which can generate inflationary pressures.
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In August 2015, the U.S. unemployment rate was highest for
A) whites. B) high school dropouts. C) Hispanics. D) African Americans. E) Asians.
If the consumption of a good by one person reduces the amount of it that can be consumed by others, the good is
A. excludable. B. nonexcludable. C. rivalrous in consumption. D. nonrivalrous in consumption.
Because labor unions contribute to keeping real wages ________ their equilibrium levels, higher unionization rates will tend to contribute to ________ unemployment rates
A) above; higher B) above; lower C) below; higher D) below; lower
What is a problem with using a production function of the form Q = aK + bL (a > 0, b > 0)?
A. The marginal products of the inputs do not have diminishing marginal returns. B. MRTS is constant. C. A positive output can be produced when one input is not used. D. both a and b E. all of the above