Cyclical unemployment occurs because
A. structural barriers such as unions and minimum wage laws keep wages too high to clear the labor market.
B. there are long-term mismatches between workers skills and jobs available.
C. labor markets are heterogeneous and dynamic.
D. the economy is experiencing a period of unusually low production.
Answer: D
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The Phillips curve represents a direct relationship between the inflation rate and the unemployment rate
a. True b. False Indicate whether the statement is true or false
There are economists who believe that some types of government spending are better for the economy than other types of government spending
Indicate whether the statement is true or false
If the nominal interest rate is 8 percent and the real interest rate is 3 percent, then the inflation rate equals:
A. 5 percent. B. 8 percent. C. 11 percent. D. 3 percent.
Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?
A. It produces less than does the monopolist producing efficiently. B. Its total profit is lower than that of the monopolist producing efficiently. C. Its total profit is the same as that of the monopolist producing efficiently. D. Its total revenue is less than that of the monopolist producing efficiently.