The steeper the short-run aggregate supply curve, _____
Fill in the blank(s) with the appropriate word(s).
the smaller the impact of a shift in aggregate demand on equilibrium output.
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The natural rate of unemployment is fixed and unchanging
Indicate whether the statement is true or false
What do economists mean by the term "sticky wage"?
A. It refers to the reluctance by employers to increase nominal wages during an inflationary period. B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. C. It refers to a breakdown in wage negotiations between employers and employee unions. D. It refers to a union negotiated wage.
Assume an economy experiences, for a given period, a 4% increase in output and a 4% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period. B) The unemployment rate decreased during this period. C) The unemployment rate did not change during this period. D) The effects on the unemployment rate are ambiguous. E) none of the above
"The higher the price of a good or service, the greater the quantity that people are willing to sell" is
A. the law of demand. B. the law of supply. C. neither the law of demand or the law of supply.