In the classical view, flexible wage rates would assure
A) low inflation.
B) high rates of unemployment.
C) high secular inflation rates.
D) full employment.
D
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Davis and Haltiwanger showed that ________ churning of jobs occurs and that this churning reflects closing of old plants and opening of new ones ________
A) little; in different industries B) little; within the same industry C) much; within the same industry D) much; in different industries
An example of a nominal variable is ________
A) income measured at current market prices B) expenditures in terms of the quantities of actual goods C) the chain weighted measure of GDP D) all of the above E) none of the above
Which of the following best explains why a firm in a competitive price-taker market must take the price determined in the market?
a. The short-run average total costs of firms that are price takers will be constant. b. If a price taker increased its price, consumers would buy from other suppliers. c. Firms in a price-taker market will have to advertise in order to increase sales. d. There are no good substitutes for the product supplied by a firm that is a price taker.
Markets can efficiently handle irreversible decisions without involvement of government.
Answer the following statement true (T) or false (F)