All of the following tends to occur when unemployment is above the natural rate EXCEPT:
A) wage increases will be limited
B) inflation will rise
C) increases in the cost of production will be limited
D) there is slack in the labor market
B
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For automobile demand in the U.S., the income response tends to be larger in the:
A) short run. B) long run. C) The income response is the same in the long run and the short run. D) We do not have enough information to answer this question.
The worst and most difficult to extract resources are used first
a. True b. False Indicate whether the statement is true or false
A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously. b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all. c. Analyze the chain reaction of economic interactions. d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.
In a competitive market, a negative externality creates a deadweight loss because
A) the cost of the externality is double counted. B) a harm is generated. C) price equals social marginal cost. D) price equals private marginal cost.