The natural rate of unemployment worsens if:
a. Labor force mobility worsens.
b. Capital markets become more competitive.
c. A nation's resource endowments expand.
d. Real wages become more flexible.
e. None of the above.
.A
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In a dynamic game, rational players
A) will reject outcomes that are not subgame perfect. B) use backward induction to determine best responses. C) have strategies that select a Nash equilibrium in the game as a whole. D) All of the above.
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market price falls from P1 to P2, then:
A. total surplus increases. B. deadweight loss increases. C. overproduction increases. D. underproduction decreases.
If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will:
A. Decrease by 6 percent B. Decrease by 4 percent C. Decrease by 2 percent D. Increase by 2 percent
Which of the following is most likely a quote from the economist John Maynard Keynes?
a. “[Economics] is a doctrine rather than a method, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.” b. “[Economics] is neither a method nor a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.” c. “[Economics] is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.” d. “[Economics] is both a method and a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.”