When the quantity of labor supplied is equal to the quantity of labor demanded at the equilibrium wage rate
A) frictional unemployment is zero.
B) there is a lack of unemployment.
C) the economy operates at full-employment output.
D) the economy is at a peak point during an inflationary period.
C
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According to Keynesians, the primary source of business cycle fluctuations is
A) aggregate demand shocks. B) productivity shocks. C) oil price shocks. D) consumer confidence shocks.
Complements
What will be an ideal response?
Refer to the diagram below of three demand curves for coffee. An increase in the price of coffee, other factors constant, would cause a:
A. Shift from D1 to D3
B. Shift from D1 to D2
C. Movement from point a to point b
D. Movement from point b to point a
General equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) Any of the above.