If all firms are paying efficiency wages and nominal aggregate demand falls, then between maintaining nominal wages and reducing them firms generally find it more profitable to ________ them, thus ________ the unemployment rate
A) maintain, increasing
B) maintain, maintaining
C) reduce, increasing
D) reduce, maintaining
A
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Price leadership is a form of explicit collusion where one firm in an oligopoly announces a price change and expects all other firms to follow suit
Indicate whether the statement is true or false
A variable cost function of the form: VC = 52 + 2Q + 3Q2 implies a marginal cost curve that is
A) constant. B) upward sloping. C) U-shaped. D) quadratic.
The government can help solve the information asymmetry problem by:
A. telling less-informed parties not to participate in the market. B. excluding those who do not have complete information from the market. C. making markets illegal where information asymmetry is significant. D. requiring the more informed party to reveal the missing information.
The deviation of unemployment from its natural rate is called
a. the normal rate of unemployment. b. deviant unemployment. c. cyclical unemployment. d. fluctuating unemployment.